Mathematically,the utility function for risk adverse individuals is said to be _____ and/or _____.
A)decreasing,linear
B)decreasing,convex
C)increasing,linear
D)increasing,concave

Question

Quizplus · Accepted Answer

Risk-averse individuals have increasing, concave utility functions. This shape reflects diminishing marginal utility of wealth, meaning each additional unit of wealth provides less additional utility.

Mathematically,the Utility Function for Risk Adverse Individuals Is Said to Be