Among the utility curves,the ones having a variable slope of the utility versus the dollar amount is descriptive of:
A)one willing to spend increasing amounts of money initially followed by a leveling off for increasing dollar amounts.
B)One using the expected monetary value approach
C)One whose utility is to spend greater dollar amounts with increasing utility
D)both a and c

Question

Quizplus · Accepted Answer

Option D describes the utility curves with a variable slope which initially increases with increasing dollar amounts and then levels off. Thus, it includes the option A where the individual is willing to spend increasing amounts initially, followed by a leveling off, and option C where the individual's utility increases with greater dollar amounts spent. This type of utility curve is different from the expected monetary value approach, which is a decision-making approach based on probabilistic outcomes and their associated values.

Among the Utility Curves,the Ones Having a Variable Slope of the Utility