What Happens to the Absolute Value of Marginal Rate of Substitution

question 38

Multiple Choice

What happens to the absolute value of marginal rate of substitution as you move down a convex (bowed toward the origin) indifference curve?

• A) increases
• B) decreases
• C) remains constant
• D) could increase or decrease

---

Definitions:

Water Filtration System

A mechanism or process used to remove impurities and contaminants from water, making it safe for consumption or use.

SWOT Analysis

A tool for strategic planning that helps in recognizing and comprehending the Strengths, Weaknesses, Opportunities, and Threats associated with business rivalry or the planning of a project.

Brand Managers

Brand managers are professionals responsible for the development, implementation, and management of marketing strategies and campaigns to build and maintain a brand's image, relevance, and consumer perception.

Growth

The process of increasing in size, number, value, or strength.