For a risk averse person, the marginal utility of wealth
A) decreases as wealth increases.
B) increases as wealth increases.
C) decreases as wealth decreases.
D) remains constant as wealth increases.

Question

Quizplus · Accepted Answer

For a risk-averse person, the marginal utility of wealth decreases as wealth increases because they derive less additional satisfaction from each additional unit of wealth.

For a Risk Averse Person, the Marginal Utility of Wealth