Answered: 1. Show if the following utility…

1. Show if the following utility functions represent risk averse, risk neutral or risk loving preferences. u(c) = 10° + 3 u(c) = C² + 3C i. ii. 111. u(c) = e 4C

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

1. Show if the following utility functions represent risk averse, risk neutral or risk loving
preferences.
u(c) = 10° + 3
u(c) = C2 + 3C
i.
ii.
ii.
u(c) = e4C
iv.
u(c) = 1 – e-C

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