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Question
Indifference curves are convex to the origin because of ______.
Options
Increasing MRS
Diminishing MRS
Law of Diminishing Marginal Utility
Law of Equi-Marginal Utility
MCQ
Fill in the Blanks
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Solution
Indifference curves are convex to the origin because of Diminishing MRS.
Explanation:
As more of one good is consumed, the consumer gives up fewer units of the other good for each additional unit. This diminishing MRS makes the indifference curve convex to the origin.
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