If an individual's utility function is quasi-concave,his or her MRS will:
A)diminish as x is substituted for y.
B)increase as x is substituted for y.
C)be undefined except in special cases.
D)always depend only on the ratio of x to y.

Question

Quizplus · Accepted Answer

For a quasi-concave utility function, the MRS will decrease as more of good x is substituted for good y, which means the individual is willing to give up less of good y for each additional unit of good x.

If an Individual's Utility Function Is Quasi-Concave,his or Her MRS