How would you characterize a consumer who is risk loving?
A) A consumer who may accept a risky prospect even if the expected gain is negative.
B) A consumer who demands a positive expected gain as compensation for taking risk.
C) A consumer who completely ignores risk and makes his or her decisions solely on the basis of expected values.
D) None of the above.

Question

Quizplus · Accepted Answer

A risk-loving consumer is someone who is willing to accept a potentially negative outcome in exchange for the possibility of a high expected gain. They are comfortable with taking risks and may even enjoy it. Therefore, the consumer who may accept a risky prospect even if the expected gain is negative is a characteristic of a risk-loving consumer.

How Would You Characterize a Consumer Who Is Risk Loving