Multiple Choice
A risk-averse person has
A) a utility function whose slope gets flatter as wealth rises.This means they have increasing marginal utility of wealth.
B) a utility function whose slope gets flatter as wealth rises.This means they have diminishing marginal utility of wealth.
C) a utility function whose slope gets steeper as wealth rises.This means they have increasing marginal utility of wealth.
D) a utility function whose slope gets steeper as wealth rises.This means they have diminishing utility of wealth.
Correct Answer:
Verified
Correct Answer:
Verified
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