A Consumer Has a Von Neumann-Morgenstern Utility Function of the Form

question 11

True/False

A consumer has a von Neumann-Morgenstern utility function of the form U(c_A, c_B, p_A, p_B)= p_Av(c_A)+ p_Bv(c_B), where p_A and p_B are the probabilities of events A and B and where c_A and c_B are consumptions contingent on events A and B respectively.This consumer must be a risk lover if v is an increasing function.

---

Definitions:

Helicobacter Pylori

A type of bacteria that infects the stomach lining and is associated with ulcers and some forms of stomach cancer.

Escherichia Coli

A type of bacteria commonly found in the intestines of humans and animals, some strains of which can cause food poisoning.

Basal Metabolic Rate

Rate at which the body uses energy when at rest.

Energy

The capacity to do work, existing in various forms such as kinetic, potential, thermal, electrical, chemical, and nuclear.