If Pearl is a risk averse, then
A) expected utility has nothing to do with her choices.
B) she does not have diminishing marginal utility of wealth.
C) she will not buy insurance.
D) risk is costly to her.
Question 2
Compared to a single-price monopoly, a perfectly competitive market with the same costs produces ________ output and has a ________ price.
A) less; lower
B) less; higher
C) more; lower
D) more; higher