Figure 27-3
The following figure shows a utility function for Dexter.
-Refer to Figure 27-3. From the appearance of the utility function, we know that
A)Dexter is risk averse.
B)Dexter gains more satisfaction when his wealth increases by X dollars than he loses in satisfaction when his wealth decreases by X dollars.
C)the property of decreasing marginal utility applies to Dexter.
D)Dexter does not enjoy engaging in risky behavior.

Question

Figure 27-3
The following figure shows a utility function for Dexter. 
-Refer to Figure 27-3. From the appearance of the utility function, we know that
A)Dexter is risk averse. 
B)Dexter gains more satisfaction when his wealth increases by X dollars than he loses in satisfaction when his wealth decreases by X dollars. 
C)the property of decreasing marginal utility applies to Dexter. 
D)Dexter does not enjoy engaging in risky behavior.

Quizplus · Accepted Answer

The Answer of Figure 27-3
The following figure shows a utility function for Dexter. 
-Refer to Figure 27-3. From the appearance of the utility function, we know that
A)Dexter is risk averse. 
B)Dexter gains more satisfaction when his wealth increases by X dollars than he loses in satisfaction when his wealth decreases by X dollars. 
C)the property of decreasing marginal utility applies to Dexter. 
D)Dexter does not enjoy engaging in risky behavior.

Figure 27-3 The Following Figure Shows a Utility Function for Dexter