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Question
Indifference curve are convex to the origin because of ______
Options
Increasing MRS
Diminishing MRS
Law of diminishing MU
Law of equi-marginal utility
MCQ
Fill in the Blanks
Solution
Indifference curve are convex to the origin because of Diminishing MRS.
Explanation:
In most cases, an Indifference Curve is convex to the origin. Because of the diminishing marginal rate of substitution, this is the case.
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Ordinal Approach (Utility Analysis)
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