Suppose the manager of a firm has a utility function for profit U(π ) = 10 ln(π ), where π is the dollar amount of profit. The manager is considering a risky project with the following profit payoffs and probabilities:

- Fill in the blanks in the table showing the marginal utility of an additional $1,000 of profit.

Question

Suppose the manager of a firm has a utility function for profit U(π ) = 10 ln(π ), where π is the dollar amount of profit. The manager is considering a risky project with the following profit payoffs and probabilities:
 
-  Fill in the blanks in the table showing the marginal utility of an additional $1,000 of profit.

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The Answer of Suppose the manager of a firm has a utility function for profit U(π ) = 10 ln(π ), where π is the dollar amount of profit. The manager is considering a risky project with the following profit payoffs and probabilities:
 
-  Fill in the blanks in the table showing the marginal utility of an additional $1,000 of profit.

Suppose the Manager of a Firm Has a Utility Function