The curve for the _____ will show a rapid increase in utility for initial amounts of money followed by a gradual leveling off for increasing dollar amounts.
A)risk taker
B)risk averter
C)risk neutral
D)profit seeker

Question

Quizplus · Accepted Answer

The concept being described is that of diminishing marginal utility, which states that as a person gains more of a good or service, the additional satisfaction gained decreases, eventually reaching a point where further consumption provides little to no additional satisfaction. This is especially relevant for risk averters when it comes to money, as the more money they have, the less additional utility each additional dollar provides. Therefore, the correct choice is B, risk averter.

The Curve for the _____ Will Show a Rapid Increase