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When is the PPF convex to the origin? - Economics Stack Exchange 8 Mar 2019 · Given a 2X2 model (2 goods, 2 inputs), if the factor intensities (capital/labour ratio) of the two goods along the Pareto set are unequal, then we get a concave PPF. Can we get a convex PPF in some...
Why an indifference curve is convex to the origin? - LearnPick Indifference curves are convex to the origin because the marginal utility of each product consumed decreases with subsequent consumption. This convex relationship is based upon an idea dubbed the marginal rate of substitution, which is represented by the formula (Z = change in X / change in Y).
microeconomics - How to determine convexity or concavity of an ... 23 Jan 2023 · By one definition, an IC is convex if the function y(x) is a convex function—this is the definition used in Nicolas Torres' answer. If that's your definition then his answer is correct. But the second definition (an IC is convex if its upper contour set is convex) matches the conditions you were given by the instructor, so is probably the one s/he had in mind. $\endgroup$
Why is the indifference curve convex to origin? - Toppr The indifference Curve is convex to origin because of decreasing MRS (Marginal rate of substitution). T he curve represents the marginal rate of substitution. Hence, option (a) is correct.
"Convex to origin" indifference curves - Economics Stack Exchange 13 Mar 2024 · The expression tries to convey a visual notion of convexity. It is "convex to the origin" in the sense that if we "stand" at the origin, the point $(0,0)$, and "look towards" the graph, we will perceive it as convex. In contrast, if we stand "above" such a graph looking towards it, taking "our" position as being the origin, it will be concave.
Marginal Rate of Substitution: Indifference Curve, Assumptions They are convex from below, i.e., convex to the origin. An indifference curve that lies to the right of another, yields more utility. Marginal Rate of substitution. It is the rate at which the consumer is willing to give up commodity ‘X’ for one more unit of commodity ‘Y’. He tries to maintain the same level of satisfaction.
The lesser the convexity of the isoquant curve the greater the The isoquant curves are drawn convex to the origin due to diminishing technical rate of substitution. A Both Assertion and Reason are correct and Reason is the correct explanation for Assertion
Why is an indifference curve convex to origin? - Toppr An indifference curve is convex to the origin because of diminishing MRS. MRS declines continuously because of the law of diminishing marginal utility. As seen in Table, when the consumer consumes more and more of apples, his marginal utility from apples keeps on declining and he is willing to give up less and less of bananas for each apple.
microeconomics - Convex to origin - precise definition 24 Mar 2024 · The term "convex to the origin" seems to have been used in the prosaic meaning of "bending towards the origin" without a formal mathematical definition. The note. Kozlik, Adolf. "Note on the Terminology Convex and Concave." The American Economic Review 31.1 (1941): 103-105. discusses the variation of early usage, which was not uniform.
A convex to the origin PPC implies - Toppr The slope of production possibility curve is the marginal opportunity cost which refers to the additional sacrifice that an economy must make when it shifts resources and technology from production of one commodity to the other. Therefore, if marginal opportunity cost decreases then PPC will be convex to the origin owing to decreasing slope.