Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder

تمرين 9

"Risk-averse people should only be averse to big gambles with a lot of money at stake. They should jump on any small gamble that is unfair in their favor." Explain why this statement makes sense. Use a utility-of-income graph like Figure 4.1 to illustrate the statement.