Question

what does diminishing marginal rate of substitution indicate? Relate it to the law of dimnishing marginal utility

Answer 1

If the marginal rate of substitution isincreasing, the indifference curve willbe concave to the origin. ... The Law of Diminishing Marginal Rates of Substitution states that MRS decreases as one moves down the standard convex-shaped curve, whichis the indifference curve.