Figure 19-2

question 194

Multiple Choice

Figure 19-2.The figure shows a utility function for Mary Ann.
-Refer to Figure 19-2.Suppose Mary Ann begins with $1,050 in wealth.Starting from there,

• A) she would be willing to accept a coin-flip bet that would result in her winning $300 if the result was "heads" or losing $300 if the result was "tails."
• B) the pain of losing $300 of her wealth would equal the pleasure of adding $300 to her wealth.
• C) the pain of losing $300 of her wealth would exceed the pleasure of adding $300 to her wealth.
• D) the pleasure of adding $300 to her wealth would exceed the pain of losing $300 of her wealth.

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Definitions:

Herfindahl Index

A measure of market concentration that squares and then sums the market share percentages of all firms within the industry.

Market Shares

The proportion of a market controlled by a particular company, product, or service in relation to total sales in the market.

Herfindahl Index

A measure of market concentration that sums the squares of the market shares of all firms in the industry.

Market Shares

The portion of a market controlled by a particular company or product, often expressed as a percentage.