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MAXImum [283]
3 years ago
5

Draw a utility function over income u( I) that describes a man who is a risk lover when his income is low but risk averse when h

is income is high. Can you explain why such a utility function might reasonably describe a person’s preferences?

Business
1 answer:
AysviL [449]3 years ago
6 0

Answer:

Suppose there is an individual who needs a certain level of income, I°, in order to stay alive.  An increase in income above that level of income I° will have a diminishing marginal utility.  Below I°, the individual will be a risk lover and will take unfair gambles and risks in an effort to make large gains in income. Above I°, the individual will purchase insurance against losses.

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Answer:

The correct answer is<u> comprehensive income.</u>

Explanation:

The change in equity (net assets) of an entity during a period from transactions and other events and circumstances from non-owner sources is called comprehensive income.

Comprehensive income includes all the revenues , losses , gains and expenses.

Formula of calculation :

Comprehensive income = Net Income + Other Comprehensive Income

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In order to live, people's physical needs must be satisfied? true or false?
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If there is a decrease in the price of the coffee beans used to make brewed coffee, how will this affect the equilibrium price a
zhuklara [117]

Answer:

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