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26 September, 07:05

The shape of your utility function implies that you are (a risk-averse or risk-friendly) individual, and, therefore, you ((you would or would not) accept the wager because the difference in utility between B and C is (less than or greater than) the difference between C and A.

Which of the following best explain why the pain of losing $1,000 exceeds the pleasure of winning $1,000 for risk-averse people?

a. The more wealth that risk-averse people have, the less satisfaction they receive from an additional dollar.

b. The utility function of a risk-averse person exhibits the law of diminishing marginal utility.

c. Risk-averse people overestimate the probability of losing money.

d. Risk-averse people are relatively poor and cannot afford to lose any money.

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  1. 26 September, 10:46
    0
    Answer:Defend or critique the following statement: "People who are unable to put aside their own interests should not be on teams."

    Explanation: I have no clue
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