colemanio23
New member
Analyse the following utility function:
U= -W-0.5
1.Is marginal utility increasing, constant or decreasing?
2.What is the function’s absolute risk aversion (ARA)?
3.What is the function’s relative risk aversion (RRA)?
U= -W-0.5
1.Is marginal utility increasing, constant or decreasing?
2.What is the function’s absolute risk aversion (ARA)?
3.What is the function’s relative risk aversion (RRA)?