-Refer to the Above Table

question 6

Multiple Choice

-Refer to the above table. What is the marginal utility for the 10th unit for Michael and for Rosie?

• A) Michael: 50; Rosie: 50
• B) Michael: 15; Rosie: 20
• C) Michael: 10; Rosie: 10
• D) Michael: -10; Rosie: 10

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Definitions:

Efficient Markets Hypothesis

A theory stating that asset prices fully reflect all available information, making it impossible to consistently achieve higher returns than the average market return.

Random Walk

The path of a variable whose changes are impossible to predict.

Marginal Utility

The additional satisfaction or usefulness gained from consuming one more unit of a good or service.

Risk-averse

Describes individuals or entities that prefer to avoid risk and would rather choose a certain outcome over a gamble with a potentially higher, but uncertain, return.