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-Marylou, Whose Utility of Wealth Curve Is Shown in the Figure

Question 114

Multiple Choice

-Marylou, whose utility of wealth curve is shown in the figure above, faces two options. Option A yields $200 for sure. Option B has a 0.3 probability of yielding $100, and a 0.7 probability of yielding $300. Marylou, who is A) picks option A. B) picks option B. C) is indifferent between option A and option B. D) needs more information to make a choice.
-Marylou, whose utility of wealth curve is shown in the figure above, faces two options. Option A yields $200 for sure. Option B has a 0.3 probability of yielding $100, and a 0.7 probability of yielding $300. Marylou, who is


A) picks option A.
B) picks option B.
C) is indifferent between option A and option B.
D) needs more information to make a choice.

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