The convex shape of the indifference curve is due to
Diminishing Marginal Rate of Substitution
Increasing MRS
Constant MRS
None
Clear selection
Answers
Answered by
1
Answer:
In economics, the marginal rate of substitution (MRS) is the amount of a good that a consumer is willing to consume in relation to another good, as long as the new good is equally satisfying. It's used in indifference theory to analyze consumer behavior. The marginal rate of substitution is calculated between two goods placed on an indifference curve, displaying a frontier of utility for each combination of "good X" and "good Y."
Similar questions
Biology,
4 months ago
Accountancy,
8 months ago
Computer Science,
8 months ago
History,
1 year ago
Biology,
1 year ago