6. a.) Do you think that a risk-averse individual gamble or will a risk lover purchase insurance? Explain your answer. b) Radha has assets worth 10,000 rupees and is facing a loss of 3,600 with a probability of 0.002. She is indifferent between paying G rupees for insurance protection and assuming the risk of loss personally. She values total assets of amount w20 according to the utility function u (w) w12. Determine G. 7. Write short notes on following: a) Different types of price discrimination b) Bilateral monopoly c) Economies of Scale d) Pooling and separating equilibrium
