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5 August, 00:43

Diminishing marginal utility of wealth implies that the utility function. Group of answer choices

a. has increasing slope and a person is risk averse.

b. has increasing slope and a person is not risk averse.

c. has decreasing slope and a person is risk averse.

d. has decreasing slope and a person is not risk averse.

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Answers (1)
  1. 5 August, 02:19
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    c. has decreasing slope and a person is risk averse.

    Explanation:

    The marignal utility of wealth represent that the subsequent utility of the person wealth is not perceived as necessary/joyful as the previous one.

    This makes the slope of the utility function to go upward but at slower grow.

    The first units of wealth produce a great improvement in utlity compared with the followings just like in any other good or service provided in the economy.
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