A. Due to continuous decline of marginal rate of substitution B. Due to law of diminishing marginal utility C. Due to monotonic preferences D. Both a and b Answer: A Q.4 Which of the following …

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

A consumer consumes only two goods. For the consumer to be in equilibrium why must marginal rate of substitution be equal to the ratio of prices of the two goods? Explain.ORA consumer …

The law of diminishing marginal rate of substitution is a theory that states that, as the quantity of a commodity increase, the marginal rate of its price falls.

Question 6 Expand MRS. Ans: MRS stands for Marginal Rate of Substitution. Question 7 Give 3 Assumptions of Indifference Curve. Ans: The three assumptions of indifference curve are : …

Introduction The following are the economics abbreviations that are used in Class 12th Economics syllabus frequently. Students are advised to learn the full form of each and every abbreviation. …

Question 10 What is the reason behind a convex indifference curve? Answer: The reason behind a convex indifference curve is the diminishing marginal rate of substitution. Question 11 Which …

The law of diminishing marginal product or productivity is an economic theory. It proclaims that increasing one input constant and maintaining other inputs constant helps in increasing the …

Utility in economic terms is the satisfaction that is derived by a person from the consumption of any goods or services. There are two types of utility specified in economics, namely, total …

Marginal standing facility (MSF) is a window for banks to borrow from the Reserve Bank of India in an emergency when inter-bank liquidity dries up completely. The Marginal standing facility is a …