Suppose tastes are NOT monotonic anywhere. Then diminishing MRS is not consistent with convexity of tastes.
Answer the following statement true (T) or false (F)
True
Rationale:
The indifference curve below has diminishing MRS, with bundles A and B both lying on the indifference curve. Bundle C is the average of A and B --- but it lies in the less preferred region given that less is better when monotonicity is violated everywhere.Thus, averages are worse than extremes (i.e. convexity is violated) when we have diminishing MRS. 
Economics
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