MATH 4570 TEST #1
I believe that I owe $8,000 in taxes. For $500, I can hire a CPA to review my tax return; there is a 20% chance that she will save me $4,000 in taxes. My utility function for (disposable income) = (current income) – (taxes) – (payment to accountant) is given by sq. root (x), where (x) is disposable income. ................
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