In consumer theory, an indifference curve is convex to the origin due to which of the following principles?

💡 Solution & Explanation

An indifference curve exhibits convexity to the origin because of the diminishing marginal rate of substitution, which dictates that a consumer requires increasingly larger amounts of one good to give up successive units of another. Alternative economic concepts like constant marginal cost or increasing returns relate to production theory rather than consumer preference mapping. This convex curvature visually represents the psychological reality of consumer diversity and balanced consumption bundles.