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Figure 14-2

Question 401

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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. Suppose Mary Ann begins with $1,050 in wealth. Which of the following coin-flip bets would she definitely not be willing to accept? A) If it is heads, she wins $100; if it is tails, she loses $95. B) If it is heads, she wins $150; if it is tails, she loses $150. C) If it is heads, she wins $150; if it is tails, she loses $140. D) She definitely would not accept any of these bets.
-Refer to Figure 14-2. Suppose Mary Ann begins with $1,050 in wealth. Which of the following coin-flip bets would she definitely not be willing to accept?


A) If it is "heads," she wins $100; if it is tails, she loses $95.
B) If it is "heads," she wins $150; if it is tails, she loses $150.
C) If it is "heads," she wins $150; if it is tails, she loses $140.
D) She definitely would not accept any of these bets.

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