John's utility of wealth curve is shown in the above figure. He currently has wealth of $20,000. If the state lottery offers a 1 in 10,000 chance of winning $10,000, John will
A) pay whatever price it takes to play.
B) pay $1 to play this game.
C) pay less than $1 to play this game.
D) not be willing to play this game at any price.
C
You might also like to view...
In the long-run, a firm in monopolistic competition produces at an output level where
A) P > ATC and MR = MC. B) P > ATC and MR > MC. C) P = ATC and MR = MC. D) P = ATC and MR > MC. E) P = ATC and MC = ATC.
Among the people who are characterized below, who has the highest opportunity cost of leisure?
a. a veterinarian who earns $25 per hour and who goes surfing during her leisure time b. a professional tennis player who earns $50 per hour giving tennis lessons and who watches TV during his leisure time c. a retail clerk who earns $15 per hour and who plays computer games during his leisure time d. a CPA who earns $150 per hour and who golfs during her leisure time