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प्रश्न
Indifference curves are convex to the origin because of ______.
पर्याय
Increasing MRS
Decreasing MRS
Constant MRS
Diminishing MU
MCQ
रिकाम्या जागा भरा
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उत्तर
Indifference curves are convex to the origin because of decreasing MRS.
Explanation:
As a consumer gets more units of Good X, their desire for it falls, making them willing to sacrifice fewer and fewer units of Good Y for each additional unit of X. This diminishing sacrifice causes the slope of the curve to flatten out as it moves rightward, bending inward toward the origin.
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