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.

---

Definitions:

Time Charge

A billing method where a service provider charges a client based on the amount of time spent on a particular task or project.

Time And Material Pricing

A pricing method where a project is billed based on the actual time spent and the materials used.

Body Shop

Typically refers to a repair shop specializing in the repair and finishing of automobile bodies.

Cost-Plus Pricing

A pricing strategy where the selling price is determined by adding a specific markup to a product's total cost.