A risk-preferring person such as Elizabeth would be willing to sell insurance at a price
A) of zero
B) This question cannot be answered without knowing the exact shapes of the utility functions
C) at which Elizabeth is indifferent between not insuring a Geoffrey and insuring him

Question

Quizplus · Accepted Answer

A risk-preferring person like Elizabeth would be willing to sell insurance at a price where she is indifferent between the risk of not insuring and the potential profit from insuring, as she derives utility from taking risks.

A Risk-Preferring Person Such as Elizabeth Would Be Willing to Sell