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The Manager's Utility Function for Profit Is U π\pi )= 50 π\pi

Question 12

Multiple Choice

The manager's utility function for profit is U π\pi ) = 50 π\pi ,where π\pi is the dollar amount of profit.The manager is considering a risky decision with the four possible profit outcomes shown below.The manager makes the following subjective assessments about the probability of each profit outcome:  The manager's utility function for profit is U  \pi ) = 50  \pi ,where   \pi  is the dollar amount of profit.The manager is considering a risky decision with the four possible profit outcomes shown below.The manager makes the following subjective assessments about the probability of each profit outcome:   The marginal utility of an extra dollar of profit is __________. A) 0.20 B) 0.30 C) 1.0 D) 10 E) none of the above The marginal utility of an extra dollar of profit is __________.


A) 0.20
B) 0.30
C) 1.0
D) 10
E) none of the above

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