Multiple Choice
Pablo must choose among options A, B, and C. Option A gives him $10,000 for sure. Option B gives him $4,000 with probability 0.5 or $16,000 with probability 0.5. Option C gives him $8,000 with probability 0.5 or $12,000 with probability 0.5. If he receives diminishing marginal utility from wealth, Pablo will
A) choose option A.
B) choose option B.
C) choose option C.
D) be indifferent among options A, B, and C.
Correct Answer:
Verified
Correct Answer:
Verified
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