Explain why diminishing marginal utility implies that a decision maker will be risk averse.

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Microeconomics

ISBN: 978-0073375854

2nd edition

Authors: Douglas Bernheim, Michael Whinston

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Question Posted: Mar 17, 2016 05:07 AM

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Explain why diminishing marginal utility implies that a decision maker will be risk averse.

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A utility function that exhibits diminishing marginal utility will imply t...View the full answer

Microeconomics

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