Multiple Choice
Use the following to answer questions:
-(Table: Amy's Utility Function) Look at the table Amy's Utility Function. Amy is an entrepreneur with current income equal to $40,000. Amy is considering development of a new product. The probability that her new product earns Amy $30,000 in additional income is 0.5, and the probability that Amy incurs a reduction of $10,000 from her current income is also 0.5. Amy's expected utility after developing her new product is _____ utils.
A) 1,360
B) 860
C) 500
D) 680
Correct Answer:

Verified
Correct Answer:
Verified
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