-Andrew's Utility of Wealth Schedule Is Depicted in the Above

question 35

Multiple Choice

-Andrew's utility of wealth schedule is depicted in the above table. Andrew is offered a job as a cook which pays $10,000. He is also offered a job as a server which will pay $5,000 if tips are poor and $15,000 if tips are good. There is a 50 percent chance that tips will be poor and a 50 percent chance that tips will be good. Given the nature of Andrew's job offers and his utility of wealth schedule, Andrew will

• A) accept the offer to work as a server.
• B) accept the offer to work as a cook.
• C) be indifferent between working as a cook or a server.
• D) be unable to reach a decision about which offer to accept.