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-Lucy Works as a College Instructor for a Fixed Annual

Question 47

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  -Lucy works as a college instructor for a fixed annual salary of $30,000. She is considering quitting this job and becoming a real estate broker. Lucy believes that as a realtor she has a 40 percent chance to make $60,000 per year and a 60 percent chance to make $25,000 a year. The figure above shows Lucy's total utility of wealth curve (U) . Lucy's expected annual income from real estate brokerage is A)  $39,000. B)  $42,500. C)  $33,000. D)  $47,500.
-Lucy works as a college instructor for a fixed annual salary of $30,000. She is considering quitting this job and becoming a real estate broker. Lucy believes that as a realtor she has a 40 percent chance to make $60,000 per year and a 60 percent chance to make $25,000 a year. The figure above shows Lucy's total utility of wealth curve (U) . Lucy's expected annual income from real estate brokerage is


A) $39,000.
B) $42,500.
C) $33,000.
D) $47,500.

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