In utility analysis,a utility curve that shows a rapid increase in utility for initial amounts of money followed by a gradual levelling off for larger amount of money is appropriate for a risk _____ decision maker.
A)seeking
B)averse
C)neutral

Question

Quizplus · Accepted Answer

A utility curve that shows a rapid increase in utility for initial amounts of money followed by a gradual levelling off for larger amount of money is indicative of risk-seeking behavior. This means that the person is willing to take greater risks for the chance of earning higher rewards.

In Utility Analysis,a Utility Curve That Shows a Rapid Increase