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ains why they do not always follow the normative theories dictate that they should. 1. Expected utility 2. Heuristic

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Normative theories predict that people should always choose certain options in gambling problems, but ____ theory explains why they do not always follow the normative theories dictate that they should.

1. Expected utility

2. Heuristic

3. Prospect

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Step 3: Explain why other options are incorrect

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please help
Diminishing marginal utility occurs because: Wählen Sie eine Antwort: The more you have, the less total satisfaction you get, up to the point where your satisfaction begins to increase again You become addicted to the product You like the product the more you have it You get tired of the product x
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