Consider the Following Scenario When Answering the Following Questions

question 57

Multiple Choice

Consider the following scenario when answering the following questions:
Ivett and Desiree are considering playing a game called Matching Fifties.In this game,Ivett and Desiree will each place a $50 bill on the table.Both players will then toss a fair coin.If both Ivett and Desiree toss heads or if they both toss tails,Ivett wins the $100 on the table.If one woman tosses heads and the other tosses tails,Desiree wins the $100 on the table.
-For each player,the expected value of this game is

• A) $0.
• B) $25.
• C) $50.
• D) $100.
• E) $200.

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Definitions:

MU/P

Marginal Utility per Price, a concept in economics that represents the additional utility or satisfaction obtained per unit of expenditure.

Consumer Behavior

The examination of the ways in which individuals, groups, and entities choose, purchase, utilize, and discard products, services, ideas, or experiences to fulfill their wants and needs.

Marginal Utility

The change in satisfaction or utility a consumer receives from consuming an additional unit of a good or service.

Utility-maximizing

The economic principle that individuals or firms seek to get the highest satisfaction or profit from their resources and choices.