Because there is a _______ marginal rate of substitution of fringe benefits for wages,a worker's wage-fringe indifference curves are typically _______:
A)diminishing; convex to the origin
B)constant; straight lines
C)diminishing; concave to the origin
D)negative; straight lines

Question

Quizplus · Accepted Answer

The marginal rate of substitution of fringe benefits for wages typically diminishes as more fringe benefits are substituted for wages, leading to indifference curves that are convex to the origin. This reflects the decreasing willingness to substitute fringe benefits for wages as the quantity of fringe benefits increases.

Because There Is a _______ Marginal Rate of Substitution of Fringe