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Business - Microeconomics

    Chapter 20

    Uncertainty

    20.1 : Uncertainty and Expected Value01:23

    20.1 : Uncertainty and Expected Value

    People face uncertain situations. Uncertainty arises in situations where future outcomes are unknown and influenced by chance or external factors. A ...

    40 views
    20.2 : Diminishing Marginal Utility of Income01:28

    20.2 : Diminishing Marginal Utility of Income

    Utility reflects the satisfaction individuals gain from consuming goods and services. As income rises, people can afford more goods and services, ...

    56 views
    20.3 : Expected Income, Expected Utility, and Risk Aversion I01:08

    20.3 : Expected Income, Expected Utility, and Risk Aversion I

    Consider a hypothetical example where John is evaluating a job offer from a company. If the company performs well, John will earn an annual income ...

    27 views
    20.4 : Expected Income, Expected Utility, and Risk Aversion II01:19

    20.4 : Expected Income, Expected Utility, and Risk Aversion II

    John is evaluating a job offer from a company where his income will be uncertain. If the company performs well, John will earn an annual income of  ...

    20 views
    20.5 : Insurance and Diversification01:24

    20.5 : Insurance and Diversification

    Mitigating financial risk is crucial, and two key strategies for doing so are insurance and diversification. Insurance helps individuals and businesses ...

    34 views
    20.6 : Risk Neutral and Risk Loving01:29

    20.6 : Risk Neutral and Risk Loving

    Individuals make decisions based on their preferences toward risk. A risk-neutral person has constant marginal utility of income. This means that each ...

    21 views
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