Question

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.

Answer 1

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

Step-by-step 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.