They are downward in the sense that the second derivative is negative. This means that there are diminishing costs with production. This usually occurs due to economics of scale which lower the AFC...
combinations food(x) clothing(y) MRS(xy)A 1 12 -B 2 6 6C 3 4 2D 4 3 1A(1,12) B(2,6) C(3,4) D(4,3)at each combination consumer receives same level of satisfactn.as income is given and constant and...
It doesn't have to be! It depends how you label x and y axis on your graph.But generally, the higher the price an item is demand will be less and conversly the lower the price, the higher demand will...