A Person Is Risk Neutral If

question 33

Multiple Choice

A person is risk neutral if

• A) Her indifference curve is concave to the origin
• B) Her indifference curve is convex to the origin
• C) Her indifference curve coincides with the expected consumption line
• D) Her indifference curve coincides with guaranteed consumption line

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Definitions:

Collusive Outcome

A situation in which firms in a market or industry agree to set prices or output levels cooperatively, often leading to higher prices for consumers.

Maximin Strategy

A decision rule used in situations of uncertainty to maximize the minimum gain that can be secured.

Equilibrium

A state where market supply and demand balance each other, and, as a result, prices become stable.

Dominant Strategy

In game theory, a strategy that is best no matter what the opposition does.