​When the Utility Function for a Risk-Neutral Decision Maker Is

question 27

Multiple Choice

​When the utility function for a risk-neutral decision maker is graphed (with monetary value on the horizontal axis and utility on the vertical axis) , the function appears as

• A) ​a convex curve.
• B) ​a concave curve.
• C) ​an 'S' curve.
• D) ​a straight line.

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Definitions:

Tachometer

An instrument used to measure the rotation speed of a shaft or disk, as in a motor or other machine.

Solenoid

A type of electromagnet where the core is moved by the magnetic field when electrical current flows through the coil surrounding it, often used to control valves or actuators.

Actuator

An output device normally connected to an output module. Examples are an air valve and cylinder.