Amos Long’s marginal utility of income function is given as: MU(= I1.5, where I represents income. From this you would say that he is
A. risk averse.
B. risk loving.
C. risk neutral.
D. none of the above
Answer:B
Amos Long’s marginal utility of income function is given as: MU(= I1.5, where I represents income. From this you would say that he is
A. risk averse. B. risk loving. C. risk neutral. D. none of the above