A utility curve that shows utility increasing at a decreasing rate as the monetary value increases represents the utility curve of a risk seeker.

Question

Quizplus · Accepted Answer

A utility curve that shows utility increasing at a decreasing rate as the monetary value increases represents risk aversion, not risk seeking. Risk seekers would have a utility curve that shows utility increasing at an increasing rate with monetary value.

A Utility Curve That Shows Utility Increasing at a Decreasing