The Property of Diminishing Marginal Rate of Substitution Follows from the Property

question 14

Multiple Choice

The property of diminishing marginal rate of substitution follows from the property that the indifference curve is

• A) downward sloping.
• B) upward sloping.
• C) bowed in toward the origin.
• D) bowed out from the origin.
• E) concave from the origin.

---

Definitions:

Marketing Concept

A business philosophy suggesting that the key to achieving organizational goals consists of the company being more effective than competitors in creating, delivering, and communicating customer value.

Customer Needs

Refers to the desires and requirements of clients that a company aims to fulfill with its products or services.

Production Orientation

A business approach that focuses on the efficiency of production and distribution processes rather than understanding and meeting the needs of the consumer.

Unit Costs

The total expense incurred by a company to produce, store, and sell one unit of a particular product or service.