Hi, I am a mathematics graduate and this is my first attempt in economics, can someone please explain the steps for calculating the maximum insurance premium for an individual using utility function.
It's not that formulaic. Hence in most comics curves you don't see a scale. It's just the general shape that is shown. The maximum price is the highest price the customer is prepared to pay I've make a sale. Beyond that, the customer isn't getting 'utility' from buying cover. Don't worry, it takes time to adjust to eco ica when you are used to having definite answers. Of course if you are given a mathematical equation, you would know how to proceed. Same idea with your other question about minimums. Hope you get the idea now.
