A Consumer Who Is Risk Neutral Is Best Characterized as ________

question 35

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 or her decisions based solely on expected values
• D) None of the above

---

Definitions:

Specified Word

A particular term that is clearly indicated or defined within a context or study, often to ensure clarity and precision in communication or analysis.

Text Retrievers

Software or tools used to search for and retrieve textual data from databases or the internet based on specified criteria.

Character String

A sequence of characters, either as a literal constant or as some kind of variable, often used in programming and data processing.

Items

Individual objects, things, or units, especially when part of a list or collection.