Economy, asked by illukka525891, 8 months ago

The convex shape of the indifference curve is due to



Diminishing Marginal Rate of Substitution

Increasing MRS

Constant MRS

None

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Answered by devkadiyan3
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."

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