Which of the following statements about the marginal rate of substitution is correct?

Question

Accepted Answer

If good 1 is neutral and measured on horizontal axis, the marginal rate of substitution is equal to 0.

Answer

None of the statements is true.

Answer

For perfect substitutes, the marginal rate of substitution is diminishing as we move along the indifference curve.

Answer

The marginal rate of substitution is constant for perfect complements as we move along the indifference curve.

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