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Utility function is U(x)= x/(x+k) where k is a positive constant. a) Does this utility function conform to the usual assumptions of positive and
Utility function is U(x)= x/(x+k´) where k is a positive constant.
a) Does this utility function conform to the usual assumptions of positive and diminishing marginal utility?
b) For this utility function, find the coefficient of absolute risk aversion, θ, and the coefficient of relative risk aversion, γ
could you please help me answer these two questions