If the slope of a person's utility function for different money prizes is linear, the person
A)is risk averse.
B)is a risk lover.
C)is indifferent to risk.
D)We can't really say

Question

Quizplus · Accepted Answer

A linear utility function indicates that the person is indifferent to risk, as their utility increases at a constant rate with money, showing neither risk aversion nor risk seeking behavior.

If the Slope of a Person's Utility Function for Different