Plot the following three utility functions

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(a) Plot the following three utility functions that relate utility U to wealth W, for values of wealth in the range 1. . . 50, using a spreadsheet tool such as Excel: UA = 2W -0.01W2 ; UB = 2W; UC = 2W +0.02W2.

(b) State whether each utility function displays risk neutrality, risk aversion or risk love.

(c) Judging from the shapes of the functions you have plotted, do they display increasing, constant or diminishing marginal utility?

Reference no: EM131072460

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