Question: Suppose a consumer has a von Neumann-Morgenstern utility function that is increasing in wealth. The consumer is offered a bet with probability 2/3 of winning

Suppose a consumer has a von Neumann-Morgenstern

Suppose a consumer has a von Neumann-Morgenstern utility function that is increasing in wealth. The consumer is offered a bet with probability 2/3 of winning $t and probability 1/3 of losing $t. True, false or uncertain: there exists some level of 1>0 that is small enough so that the consumer will always take the bet

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