Question: Consider two utility functions u(x) and (x) where x is the amount of money consumed by the agent. a) Explain formally what it means that

Consider two utility functions u(x) and (x) where x is the amount of money consumed by the agent.

a) Explain formally what it means that an agent with utility function u is more risk averse than an agent with utility function .

b) Show that an agent with utility function u(x) = log x is more risk averse than an agent with utility function (x) = x

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