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Figure 14-4

Question 285

Multiple Choice

Figure 14-4. The figure shows a utility function for Dexter. Figure 14-4. The figure shows a utility function for Dexter. -Refer to Figure 14-4. 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.
-Refer to Figure 14-4. 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.

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