A diagram of an individual's utility from income will be a line with a constant slope if the individual is risk-neutral.

Name: A diagram of an individual's utility from income will be a line with a constant slope if the individual is risk-neutral.
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Question

Quizplus · Accepted Answer

A risk-neutral individual values each additional unit of income equally, leading to a linear utility function with a constant slope, reflecting a constant marginal utility of income.

A Diagram of an Individual's Utility from Income Will Be