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Question
A risk-averse person hasa. a utility function whose slope gets flatter as wealth rises. This means they have increasing marginal utility of wealth.
b. a utility function whose slope gets flatter as wealth rises. This means they have diminishing marginal utility of wealth.
c. a utility function whose slope gets steeper as wealth rises. This means they have increasing marginal utility of wealth.
d. a utility function whose slope gets steeper as wealth rises. This means they have diminishing utility of wealth.
Answer
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