There can be more than one correct answer. The marginal utility of the last unity of X1 consumed increases The consumer will farther to the right on the original indifference curve The consumer will be on a higher indifference curve The marginal utility of the last unity of X1 consumed decreases

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Marginal Rate of Technical Substitution

MRTS reaches a manufacturer when a part of the product is lowered to sustain the manufacturing level when the other part is extended. It is the level of the quantity that is lowered when one extra volume is used, and the output is unchanged.

Preferences and Utility Analysis

Before understanding what is preference and utility analysis, it is very important to understand the terms preference and utility separately.