The risk seeker's curve represents the utility of one who enjoys taking risks. Therefore, the slope of the utility curve becomes______ for large dollar amounts.
A) uncertain
B) smaller
C) stable
D) larger

Question

Quizplus · Accepted Answer

The risk seeker's curve represents an individual who enjoys taking risks, meaning that their utility increases with the amount of money being risked. Therefore, the slope of the utility curve must be positive and increasing, resulting in a larger slope for larger dollar amounts.

The Risk Seeker's Curve Represents the Utility of One Who