Figure 19-2

question 294

Multiple Choice

Figure 19-2.The figure shows a utility function for Mary Ann.
-Refer to Figure 19-2.From the appearance of the utility function,we know that

• A) Mary Ann is risk averse.
• B) Mary Ann gains less satisfaction when her wealth increases by X dollars than she loses in satisfaction when her wealth decreases by X dollars.
• C) the property of diminishing marginal utility applies to Mary Ann.
• D) All of the above are correct.

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Definitions:

Contra-Asset

An account that offsets or reduces the balance of a related asset account, such as accumulated depreciation.

Allowance for Doubtful Accounts

An estimation recorded on financial statements reflecting the amounts expected to be uncollected from accounts receivable.

Total Assets

The sum of all assets, both current and long-term, owned by a business, reported on a company's balance sheet.