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The vNM utility is as in the previous question. For the strictly risk averse consumer to strictly prefer more money to less, a. c=0 and b>0....

Q7. The VNM utility is as in the previous questionq7.jpeg

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7. The vNM utility is as in the previous question. For the strictly risk averse consumer to
strictly prefer more money to less, a. c=0 and b>0.
b. b>0. c. b>0 and c=0. d. Impossible unless only sufficiently small amounts of money are involved in the lot-
teries. e. None of the above.

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1 comment
  • All the best in your studies
    • DrKakilo
    • May 04, 2018 at 9:46pm

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