Pablo Must Choose Among Options A, B, and C

question 153

Multiple Choice

Pablo must choose among options A, B, and C. Option A gives him $10,000 for sure. Option B gives him $4,000 with probability 0.5 or $16,000 with probability 0.5. Option C gives him $8,000 with probability 0.5 or $12,000 with probability 0.5. If he receives diminishing marginal utility from wealth, Pablo will

• A) choose option A.
• B) choose option B.
• C) choose option C.
• D) be indifferent among options A, B, and C.

Identify the psychological effects such as herding effect in consumer behavior.

Comprehend the concept of participatory commerce and its role in product innovation.

Understand the importance of user-generated content in social commerce strategy.

Grasp the significance and benefits of reviews in E-Commerce.

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Definitions:

Legal Admissions

Refers to statements or facts acknowledged to be true by parties involved in a legal proceeding, which can be used as evidence in court.

Partnership

A legal form of business operation between two or more individuals who share management and profits.

Implied Authority

Authority of an agent that is not expressly granted but assumed to be provided due to the nature of the agent's work or position.

Apparent Authority

Refers to a situation where a third party correctly believes that an agent has the power to act on behalf of a principal, even if the agent does not have the actual authority.