Diminishing Marginal Utility Causes an Investor to Refuse to Accept

question 30

Multiple Choice

Diminishing marginal utility causes an investor to refuse to accept a fair bet because

• A) the investor finds greater and greater satisfaction from each additional dollar earned.
• B) the investors have a greater opportunity cost than most other investors.
• C) the satisfaction of gaining a dollar is less than the dissatisfaction of losing a dollar.
• D) the dissatisfaction of losing a dollar is less than the satisfaction of gaining a dollar.

---

Definitions:

Linear Function

A mathematical function that produces a graph of a straight line and is defined by an equation of the first degree.

Polynomial Function

A mathematical expression consisting of variables, coefficients, and non-negative integer exponents, summed together.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating its sensitivity to price changes.

Revenue Models

Financial frameworks that outline how a business or project generates earnings through its operations and sales.