abdulakimzenu8

1. Girma is a senor college student. He owns a car that has a market value of 500,000 birr. He also has different personal properties in his rented home. He wears disposable contact lenses which costs him 800 birr every year. Moreover, he runs every day for 30 minutes in a nearby public park that has a track record of being dangerous because of drug dealers and purse-snatchings. His parents are working hard to support his tuition fee.

If Girma potentially faces the following risks, which risk handling tools will be the appropriate? Explain your answer appropriately

• Physical damage to his car because of collision with another car
• Liability lawsuit against him because of negligent operation of his car
• Total loss of his personal properties because of fire
• Disappearance of his disposable contact lenses
• Physical assault on Girma by drug dealers in the area where he runs
• Loss of tuition fee helps because his father is killed by a drunk driver in car accident.

1. Hachalu is a senior college student. He owns a car that has a market value of 500,000 birr. He also has different personal properties in his rented home. He wears disposable contact lenses which costs him 800 birr every year. Moreover, he runs every day for 30 minutes in a nearby public park that has a track record of being dangerous because of drug dealers and purse-snatchings. His parents are working hard to support his tuition fee.
    If Hachalu potentially faces the following risks, which risk handling tools will be the appropriate? Explain your answer appropriately 

11. A decision maker wishes to maximize the total benefit associated with three activities, X, Y, and Z. The price per unit of activities X, Y, and Z is $1, $2, and $3, respectively. The following table gives the ratio of the marginal benefit to the price of the activities for various levels of each activity:

a. If the decision maker chooses to use one unit of X, one unit of Y, and one unit of Z, the total benefit that results is $______

b. For the fourth unit of activity Y, each dollar spent increases total benefit by $______. The fourth unit of activity Y increases total benefit by $______.

c. Suppose the decision maker can spend a total of only $18 on the three activities. What is the optimal level of X, Y, and Z? Why is this combination optimal? Why is the combination 2X, 2Y, and 4Z not optimal?

d. Now suppose the decision maker has $33 to spend on the three activities. What is the optimal level of X, Y, and Z? If the decision maker has $35 to spend, what is the optimal combination? Explain.