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31 Jan 2018
Willy's friend, Wesley the Worker, is a school dropout. He has no daily personal commitments. Leisure is a normal good for Wesley. He has a positively-sloped supply curve of work hours. His MRSLI is diminishing as he works fewer hours. 2.1 (2) What does diminishing MRSLI imply about the shape of Wesley's indifference curves in the traditional labour-leisure diagram? Explain briefly. [No diagram, explanation only.] Diminishing MRS means that the slope of an IC is getting smaller as Wesley works fewer hours (takes more leisure). On that basis, ICs are convex.
Willy's friend, Wesley the Worker, is a school dropout. He has no daily personal commitments. Leisure is a normal good for Wesley. He has a positively-sloped supply curve of work hours. His MRSLI is diminishing as he works fewer hours. 2.1 (2) What does diminishing MRSLI imply about the shape of Wesley's indifference curves in the traditional labour-leisure diagram? Explain briefly. [No diagram, explanation only.] Diminishing MRS means that the slope of an IC is getting smaller as Wesley works fewer hours (takes more leisure). On that basis, ICs are convex.
glorysoft2Lv10
1 Oct 2022
Jamar FerryLv2
1 Feb 2018
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