A Consumer Who Is Risk Neutral Is Best Characterized as ______________

question 102

Multiple Choice

A consumer who is risk neutral is best characterized as ______________.

• A)A consumer who may accept a risky prospect even if the expected gain is negative
• B)A consumer who demands a positive expected gain as compensation for taking risk
• C)A consumer who completely ignores risk and makes his/her decisions based solely on expected values
• D)None of the above

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Definitions:

Verbal Offer

An offer made orally rather than in written form, often preliminary and less formal.

Legally Binding

A contract or agreement that is enforceable by law, where parties are obligated to fulfill the terms.

Nonprofit Organization

An organization that operates for the public or social benefit, rather than for the purpose of making profits for owners or shareholders.

American Red Cross

The American Red Cross is a humanitarian organization that provides emergency assistance, disaster relief, and education inside the United States.