3. Indifference curves are convex (bowed in), because: a.) they are not allowed to intersect one...
3. Indifference curves are convex (bowed in), because:
a.) they are not allowed to intersect one another
b.) the consumption of an additional unit of a good generates a smaller increase in total utility than the previous unit consumed
c.) each indifference curve represents a constant level of utility
d.) they are downward sloping
Homework Answers
ANswer
Option b
the consumption of an additional unit of a good generates a smaller increase in total utility than the previous unit consumed
The indifference curve is convex because f the rule of diminishing marginal utility as the increase in consumption decreases MU and that makes the IC curve convex.
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