True or false: a downward-sloping, convex indifference curve must represent two standard goods with diminishing marginal utility.

Answer,

False. A downward-sloping, convex indifference curvecanrepresent two goods with diminishing marginal utility, but it can also represent (among other things):

1. 1)A pair of goods where (e.g.)?has diminishing marginal utility and?has constant marginal utility.
2. 2)A pair of 'bads' withdecreasing marginaldisutility (i.e. bads which are less bad at the margin- like getting rained on when you're already pretty wet, or seeing your grade in acourse fall by 1% when you've already failed). This kind of situation makes you want to have all of one bad or all of the other, much like in the addictive case, you wanted all of one good or all of the other.

Please may you draw diagram to the answer, I cant understand what the answer is saying, diagrams with explanations, thank you! The question is complete