Show that if a person's utility of income function is convex (that is, exhibits an increasing marginal utility of income), he or she will prefer fair gambles to income certainty and may even be willing to accept somewhat unfair gambles. Do you believe this sort of risk- taking is common? What might tend to limit its occurrence?

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The Answer of Show that if a person's utility of income function is convex (that is, exhibits an increasing marginal utility of income), he or she will prefer fair gambles to income certainty and may even be willing to accept somewhat unfair gambles. Do you believe this sort of risk- taking is common? What might tend to limit its occurrence?

Show That If a Person's Utility of Income Function Is