Let's Try to Understand Alicia's Strong Dislike for Gambling by Applying

Multiple Choice

Let's try to understand Alicia's strong dislike for gambling by applying utility analysis to it. Her dislike makes sense only if

A) the sum of the marginal utility she derives from an anticipated win and the negative
Marginal utility associated with an anticipated loss is negative
B) the sum of the marginal utility she derives from an anticipated win and the negative
Marginal utility associated with an anticipated loss is positive
C) she derives zero consumer surplus from a win and suffers a loss of consumer surplus
From a loss
D) she continues to bet until she loses
E) the law of diminishing marginal utility cannot be applied to gambling