When facing a 50% chance of receiving $50 and a 50% chance of receiving $100, the individual pictured in the Figure

a)

would want to be paid a risk premium of 10 utils to give up the opportunity of facing the two outcomes.

b)

would want to be paid a risk premium of $7.50 to avoid facing the two outcomes.

c)

would pay a risk premium of $7.50 to avoid facing the two outcomes.

d)

would pay a risk premium of 10 utils to avoid facing the two outcomes.

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