Multiple Choice
Figure 27-1
The following figure shows a utility function for Ren. 
-Refer to Figure 27-1. From the appearance of the utility function, we know that
A) Ren enjoys engaging in risky behavior.
B) Ren gains more 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 Ren.
D) Ren is risk averse.
Correct Answer:
Verified
Correct Answer:
Verified
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