Use the following to answer question:
-(Table: Income and Utility for Rahim)Use Table: Income and Utility for Rahim.Rahim's expected utility from income is _____ utils.
A)3,500
B)10,000
C)3,104
D)Utility cannot be determined from the information given.

Question

Use the following to answer question: 
-(Table: Income and Utility for Rahim)Use Table: Income and Utility for Rahim.Rahim's expected utility from income is _____ utils.
A)3,500 
B)10,000 
C)3,104 
D)Utility cannot be determined from the information given.

Quizplus · Accepted Answer

According to the table, Rahim's expected utility from an income of $12,000 is 3,104 utils, which is higher than the utility associated with any other income level. Therefore, choosing an income of $12,000 would maximize Rahim's expected utility.

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