A Consumer Has a Von Neumann-Morgenstern Utility Function of the Form

question 12

True/False

A consumer has a von Neumann-Morgenstern utility function of the form U(c_A, c_B, p_A, p_B) = p_Av(c_A) + p_Bv(c_B), where p_A and p_B are the probabilities of events A and B and where c_A and c_B are consumptions contingent on events A and B respectively. This consumer must be a risk lover if v is an increasing function.