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Figure 14-2

Question 89

Multiple Choice

Figure 14-2. The figure shows a utility function for Mary Ann. Figure 14-2. The figure shows a utility function for Mary Ann. -Refer to Figure 14-2. From the appearance of the utility function, we know that A) Mary Ann is risk averse. B) Mary Ann gains less satisfaction when her wealth increases by X dollars than she loses in satisfaction when her wealth decreases by X dollars. C) the property of diminishing marginal utility applies to Mary Ann. D) All of the above are correct.
-Refer to Figure 14-2. From the appearance of the utility function, we know that


A) Mary Ann is risk averse.
B) Mary Ann gains less satisfaction when her wealth increases by X dollars than she loses in satisfaction when her wealth decreases by X dollars.
C) the property of diminishing marginal utility applies to Mary Ann.
D) All of the above are correct.

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