The Continuity Assumption Holds That Consumers Facing Risky Decisions

question 75

Multiple Choice

The continuity assumption holds that consumers facing risky decisions:

• A)can choose only if the values of outcomes are continuous.
• B)can be indifferent between a risky and a certain prospect.
• C)require only the assumptions required under certainty.
• D)prefer them to certain prospects.

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Definitions:

Cilia

Microscopic, hair-like structures that extend from the surface of many cells, involved in movement and sensory functions.

Flagella

Long, whip-like appendages that protrude from the cell body of certain cells and are used for locomotion.

Photosynthesis

The process by which green plants, algae, and certain bacteria transform light energy into chemical energy, using carbon dioxide and water to produce glucose and release oxygen.

Chloroplasts

Chloroplasts are organelles found in plant and algal cells that conduct photosynthesis, converting light energy into chemical energy stored in sugar molecules.