Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics)
20th Edition
ISBN: 9780077660819
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Chapter 8, Problem 3RQ
To determine
Heuristics and biases.
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3
Jin's Utility Function
Wealth
Utility
(Dollars)
60,000
4,000
61,000
4,110
62,000
4,209
63,000
4,288
Refer to Table 27-1. If Jin's current wealth is $61,000, then
O his gain in utility from gaining $1,000 is less than his loss in utility from losing $1,000. Jin is not risk
averse.
O his gain in utility from gaining $1,000 is greater than his loss in utility from losing $1,000. Jin is not risk
averse.
O his gain in utility from gaining $1,000 is greater than his loss in utility from losing $1,000. Jin is risk
averse.
his gain in utility from gaining $1,000 is less than his loss in utility from losing $1,000. Jin is risk averse.
6.
Chapter 8 Solutions
Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics)
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