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Risk Aversion Suppose an individual has utility of wealth given by u(w)=w. a. Does this utility function exhibit positive marginal utility of wealth, i.e. is
Risk Aversion Suppose an individual has utility of wealth given by u(w)=w. a. Does this utility function exhibit positive marginal utility of wealth, i.e. is U(w)>0 ? What does this mean? b. Does this utility function exhibit increasing or decreasing marginal utility of wealth, i.e. is U(w)>0, or U(w)
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