Figure 3.1.4 -Refer to Figure 3.1.4 Above. When Computing the Marginal Rate

question 40

Multiple Choice

Figure 3.1.4
-Refer to Figure 3.1.4 above. When computing the marginal rate of substitution from point to point as we move downward across the curve, we discover:

• A) a diminishing marginal rate of substitution.
• B) an ever increasing marginal rate of substitution.
• C) a constant marginal rate of substitution.
• D) no particular trend in the marginal rate of substitution.

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