Bob's farm harvests corns worth 89 thousand dollars (and nothing else). In each year, there is a 30% chance that a storm will attack and leaves him with only 30 thousand dollars worth of the corns. Bob's preferences over wealth are represented by U=\ln{w} . What is the maximum that Bob is willing to pay for full insurance (in unit of thousand dollars)? Please round your answer to the nearest integer.

the answer is:

the answer is:

to solve the problem, we need to remember the quotient of power property, it's defined by the following relation:

if we have a quotienf of powers that have the same base, we need to keep the same base and subtract the exponent of the denominator power to the exponent of the numerator power.

so, we are given the expression:

then, calculating we have:

hence, the answer is:

have a nice day!

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step-by-step explanation: