The manager's utility function for profit is U $\pi$)= 50 $\pi$,where $\pi$ is the dollar amount of profit.The manager is considering a risky decision with the four possible profit outcomes shown below.The manager makes the following subjective assessments about the probability of each profit outcome: The marginal utility of an extra dollar of profit is __________.
A)0.20
B)0.30
C)1.0
D)10
E)none of the above

Question

The manager's utility function for profit is U $\pi$)= 50 $\pi$,where  $\pi$ is the dollar amount of profit.The manager is considering a risky decision with the four possible profit outcomes shown below.The manager makes the following subjective assessments about the probability of each profit outcome:  The marginal utility of an extra dollar of profit is __________.
A)0.20 
B)0.30 
C)1.0 
D)10 
E)none of the above

Quizplus · Accepted Answer

The Answer of The manager's utility function for profit is U $\pi$)= 50 $\pi$,where  $\pi$ is the dollar amount of profit.The manager is considering a risky decision with the four possible profit outcomes shown below.The manager makes the following subjective assessments about the probability of each profit outcome:  The marginal utility of an extra dollar of profit is __________.
A)0.20 
B)0.30 
C)1.0 
D)10 
E)none of the above

The Manager's Utility Function for Profit Is U π\piπ )= 50 π\piπ

The Manager's Utility Function for Profit Is U $\pi$ )= 50 $\pi$