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Given the choice between A($1000, p = 1.0) and B($1200, p=0.90), Kathy prefers gamble A. Does this mean she is risk averse? describe. When offered C($1000, p=0.20) and D($1200, p=0.18), she prefers gamble D. Show that these choices are inconsistent with expected utility maximization.

Microeconomics, Economics

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