A person will be risk seeking if his (or her) utility function shows increasing marginal utility of wealth.TrueFalse

Answered: A person will be risk seeking if his…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A person will be risk seeking if his (or her) utility function shows increasing marginal utility of wealth.
True
False

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When a product is manufactured, cost is required and process of business takes place. Business can be of different types, let’s say for example in wheat business, there is wheat production and then selling of wheat takes place, whereas in tractor business tyre is mandatory. Without tyrr and tractor manufacturing equipments, tractor business would have no meaning. We have service sector businesses also, such as telecom, information technology etc which contribute towards the progress and functioning of economy.

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