Consider A Utility Function Utility 10 Income Your Income Is 121 But There Is An

Consider a utility function: Utility=10√(income). Your income is $121, but there is an illness going around the area that costs $96 to cure. There is a 10% chance that you will catch this illness. What is your expected income? What is your expected utility? How much would a competitive insurance company charge as a premium to cover this illness? Using a graph and a few well-chosen sentences, explain why someone with this utility function would pay this insurance premium

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