Use the Following to Answer Questions

question 17

Multiple Choice

Use the following to answer questions:
-(Table: Amy's Utility Function) Look at the table Amy's Utility Function. Amy is an entrepreneur with current income equal to $40,000. Amy is considering development of a new product. The probability that her new product earns Amy $30,000 in additional income is 0.5, and the probability that Amy incurs a reduction of $10,000 from her current income is also 0.5. Amy's expected utility after developing her new product is _____ utils.

• A) 1,360
• B) 860
• C) 500
• D) 680

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Definitions:

Trigone

A triangular area located in the urinary bladder, situated between the openings of the ureters and the urethra, which remains stable while the rest of the bladder expands or contracts.

Bladder

A hollow organ in the lower abdomen that stores urine before it is expelled from the body.

Pelvis

The lower part of the torso in humans and other vertebrates, consisting of the pelvis bones which surround and protect organs like the bladder and reproductive organs.

Nephron

The functional unit of the kidney, involved in the process of filtering the blood to form urine.