Figure 27-5.The figure shows a utility function for Dexter.
-Refer to Figure 27-5.From the appearance of the utility function,we know that
A)Dexter is risk averse.
B)Dexter gains less satisfaction when his wealth increases by X dollars than he loses in satisfaction when his wealth decreases by X dollars.
C)the property of diminishing marginal utility does not apply to Dexter.
D)All of the above are correct.

Question

Figure 27-5.The figure shows a utility function for Dexter. 
-Refer to Figure 27-5.From the appearance of the utility function,we know that
A)Dexter is risk averse. 
B)Dexter gains less satisfaction when his wealth increases by X dollars than he loses in satisfaction when his wealth decreases by X dollars. 
C)the property of diminishing marginal utility does not apply to Dexter. 
D)All of the above are correct.

Quizplus · Accepted Answer

The Answer of Figure 27-5.The figure shows a utility function for Dexter. 
-Refer to Figure 27-5.From the appearance of the utility function,we know that
A)Dexter is risk averse. 
B)Dexter gains less satisfaction when his wealth increases by X dollars than he loses in satisfaction when his wealth decreases by X dollars. 
C)the property of diminishing marginal utility does not apply to Dexter. 
D)All of the above are correct.