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Question
Figure27-1. The figure shows a utility function.
RefertoFigure27-1. Suppose the person to whom this utility function applies begins with $600 in wealth. Starting from there,
a. she would be willing to accept a coinflip bet that would result in her winning $200 if the result was "heads" or losing $200 if the result was "tails."
b. the pain of losing $200 of her wealth would equal the pleasure of adding $200 to her wealth.
c. the pain of losing $200 of her wealth would exceed the pleasure of adding $200 to her wealth.
d. the pleasure of adding $200 to her wealth would exceed the pain of losing $200 of her wealth.
Answer
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Related questions
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