=
Note: Conversion is based on the latest values and formulas.
microeconomics - Convex to origin - precise definition 25 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.
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 an indifference curve is convex to the origin? - LearnPick 27 Nov 2015 · 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).
"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.
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.
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.
Write true or false with a reason:If IC is convex to the origin, MRS ... If IC is convex to the origin, MRS should be diminishing. Because, the consumer is willing to sacrifice less and less amount of Good-Y for every additional unit of Good-X.
When is the PPF convex to the origin? - Economics Stack Exchange 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 are demand and supply curves shown as concave up? 3 Jan 2020 · $\begingroup$ @TejasSubramaniam but as I said in my answer 1. Marginal cost is increasing 2. It is though of increasing at increasing rate (second half of paragraph 3).
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.