Multiple choice

Assertion (A) : Indifference curve are convex to origin. Reason (R) : The Law of diminishing marginal utility is excepted in the discipline of Economics.

  1. Both (A) and (R) are true but (R) is not the correct explanation

  2. Both (A) and (R) are false

  3. Both (A) and (R) are true and (R) is the correct reason

  4. (A) is false but (R) is true
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Indifference curves are convex to the origin due to the diminishing marginal rate of substitution (not diminishing marginal utility). As consumers substitute one good for another, they become less willing to trade more of the first good for the second good, causing the curve to bulge outward. The Reason incorrectly cites 'diminishing marginal utility' but both statements are treated as true in this context.

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