Strictly diminishing marginal pain from losses implies what about the slope of the value function in the domains of losses?
A) Concavity.
B) Linearity.
C) Convexity.
D) None of the above.

Question

Quizplus · Accepted Answer

Strictly diminishing marginal pain from losses implies that as losses increase, the additional pain from each additional unit of loss decreases, which is characteristic of a concave function.

Strictly Diminishing Marginal Pain from Losses Implies What About the Slope