Multiple Choice
Using the following:
The manager's utility function for profit is U = 50 , where is the dollar amount of profit. The manager is considering a risky decision with the four possible profit outcomes shown below. The manager makes the following subjective assessments about the probability of each profit outcome:
-The marginal utility of an extra dollar of profit is __________.
A) 0.20
B) 0.30
C) 1.0
D) 10
E) none of the above
Correct Answer:

Verified
Correct Answer:
Verified
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