Figure 19-2

question 325

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.Which of the following coin-flip bets would she definitely not be willing to accept?

• A) If it is "heads," she wins $100; if it is tails,she loses $95.
• B) If it is "heads," she wins $150; if it is tails,she loses $150.
• C) If it is "heads," she wins $150; if it is tails,she loses $140.
• D) She definitely would not accept any of these bets.

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