If indifference curves are concave to the origin, which assumption on preferences is violated?
A) Diminishing marginal rates of substitution
B) Transitivity of preferences
C) More is preferred to less
D) Completeness

Question

Quizplus · Accepted Answer

Concavity of indifference curves violates the assumption of diminishing marginal rates of substitution, which means that as the consumer gets more of one good, they are willing to give up less of the other good to maintain the same level of satisfaction.

If Indifference Curves Are Concave to the Origin, Which Assumption