A risk avoider is a person for whom the utility of an outcome
A)decreases as the monetary value increases.
B)stays the same as monetary value increases.
C)increases at an increasing rate as the monetary value increases.
D)increases at a decreasing rate as monetary value increases.
E)None of the above

Question

Quizplus · Accepted Answer

A risk avoider experiences diminishing marginal utility, meaning the utility increases at a decreasing rate as monetary value increases.

A Risk Avoider Is a Person for Whom the Utility