Figure 27-5

question 11

Multiple Choice

Figure 27-5.The figure shows a utility function for Dexter.
-Refer to Figure 27-5.From the appearance of the utility function,we know that

• A)Dexter is risk averse.
• B)Dexter gains more satisfaction when his wealth increases by X dollars than he loses in satisfaction when his wealth decreases by X dollars.
• C)the property of decreasing marginal utility applies to Dexter.
• D)All of the above are correct.

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Definitions:

Accept

To agree to receive or undertake something offered.

Offer

A proposal by one party to another to enter into a legal agreement, constituting one of the essential elements of a contract.

Counteroffer

A response to an offer in a negotiation, where the original offer is rejected and replaced with a new proposal.

Reasonably Certain

A standard of assurance in legal contexts, indicating that the evidence or future event is probable or likely according to logic and evidence.