Figure 9-4. The figure shows a utility function for Dexter.

-Refer to Figure 9-4. 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 9-4. The figure shows a utility function for Dexter.
 
-Refer to Figure 9-4. 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 9-4. The figure shows a utility function for Dexter.
 
-Refer to Figure 9-4. 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.