Examlex

Solved

Figure 27-1 The Following Figure Shows a Utility Function for Ren

question 31

Multiple Choice

Figure 27-1
The following figure shows a utility function for Ren. Figure 27-1 The following figure shows a utility function for Ren.   -Refer to Figure 27-1. From the appearance of the utility function, we know that A) Ren enjoys engaging in risky behavior. B) Ren 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 diminishing marginal utility does not apply to Ren. D) Ren is risk averse.
-Refer to Figure 27-1. From the appearance of the utility function, we know that


Definitions:

Related Questions