Given two decision makers,one a risk taker and the other a risk avoider,the risk avoider will show a diminishing marginal return for money.

Question

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Diminishing marginal return for money means that the more money the risk avoider has, the less utility (or satisfaction) they will derive from each additional unit of money. This is because the risk avoider is typically more concerned with avoiding losses than gaining profits, and as their wealth increases, their fear of losing it also increases. In contrast, the risk taker may continue to derive increasing utility from each additional unit of money, as they see opportunities for growth and potential returns.

Given Two Decision Makers,one a Risk Taker and the Other