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Question 26

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Use the following to answer questions: Use the following to answer questions:   -(Table: Natasha's Total Utility)  Look at the table Natasha's Total Utility. Natasha earns $50,000 per year but faces losing $20,000 of it if she is late with her work. If there is a 25% probability that Natasha will be late with her work and her income will equal $30,000, what certain income leaves Natasha just as well off as her uncertain income? A)  $37,500 B)  $38,200 C)  $40,500 D)  $42,500
-(Table: Natasha's Total Utility) Look at the table Natasha's Total Utility. Natasha earns $50,000 per year but faces losing $20,000 of it if she is late with her work. If there is a 25% probability that Natasha will be late with her work and her income will equal $30,000, what certain income leaves Natasha just as well off as her uncertain income?


A) $37,500
B) $38,200
C) $40,500
D) $42,500

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