According to principle of diminishing marginal rate of substitution a. One commodity must be decreased while other is increased b. Commodity which is increased has higher marginal significance c. Commodity which is decreased has higher marginal significance. Of these statemenls: A.Only a is correct B.Both a and b are correct C.Both a and c are correct D.All are correct

According to principle of diminishing marginal rate of substitution
a. One commodity must be decreased while other is increased
b. Commodity which is increased has higher marginal significance
c. Commodity which is decreased has higher marginal significance.
Of these statemenls:
A.Only a is correct
B.Both a and b are correct
C.Both a and c are correct
D.All are correct
by

1 Answer

Answer :

C.Both a and c are correct
by

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