Nancy's utility of wealth curve is given in the above figure. Option A gives Nancy $100 for sure. Option B gives Nancy $50 half the time and $150 half the time. Nancy's expected utility of option A
A) is greater than the expected utility of option B.
B) is the same as the expected utility of option B.
C) is less than the expected utility of option B.
D) could be either greater or less than the expected utility of option B.
A
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Despite the Postal Service's legal monopoly over first-class mail delivery,
a. the price of a first-class stamp has not changed for over a decade b. the price of a first-class stamp has fallen as delivery volume increased c. it still produces along the inelastic range of the market demand curve d. its faces competition from foreign suppliers e. it has lost huge chunks of other mail classes to private firms
The requirement that New York City taxi drivers own a "medallion" in order to operate a taxi in the city reduces competition and raises the fares that customers pay
a. True b. False