Indifference curve concave to the origin represents:

Increasing marginal rate of substitution

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Constant marginal rate of substitution

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Decreasing marginal rate of substitution

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None of the above

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Solution

The correct option is D Increasing marginal rate of substitution
An indifference curve concave to the origin would represent increasing marginal rate of substitution.

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Similar questions

Explain the concept of 'Marginal Rate of Substitution' with the help of a numerical example. Describe its behaviour along an indifference curve.

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