Question: Maoyongs utility function with respect to wealth is U(W) = ln W (where ln W means the natural logarithm of W). Plot his utility

Maoyong’s utility function with respect to wealth is U(W) = ln W (where “ ln W” means the natural logarithm of W). Plot his utility function and use your figure to determine whether Maoyong is risk averse.

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The function is concave therefore Maoyong is risk averse Marginal utility MU W 1 W is decl... View full answer

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