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Ilia_Sergeevich [38]
3 years ago
11

g A person with a diminishing marginal utility of income: Group of answer choices will be risk neutral will be risk averse will

be risk loving
Business
1 answer:
sergeinik [125]3 years ago
7 0

Answer: Risk averse

Explanation:

A person with a diminishing marginal utility of income will derive less utility from income as income increases. A risk averse person is one who would rather avoid risk but still prefers a high income.

Such a person will have a diminishing marginal utility in income because income increases more when there is more risk. A risk averse person does not want that risk and so will go for a lower income which means that they don't want more income as it is riskier to them.

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