Author Question: John Brown's utility of income function is U = log(I+1), where I represents income. From this ... (Read 63 times)

Alainaaa8 · **on:** Jul 1, 2018

John Brown's utility of income function is U = log(I+1), where I represents income. From this information you can say that

A) John Brown is risk neutral.
B) John Brown is risk loving.
C) John Brown is risk averse.
D) We need more information before we can determine John Brown's preference for risk.

Question 2

Refer to Figure 7.1. At output level Q3

A) average fixed cost reaches its minimum.
B) average total cost reaches its minimum.
C) average variable cost reaches its minimum.
D) marginal cost reaches its minimum.
E) all of the above