Question : PPF can be convex to the origin if
Option 1: MRT is decreasing
Option 2: MRT is increasing
Option 3: MRT is constant
Option 4: None of these
Correct Answer: MRT is decreasing
Solution : In the case of diminishing MRT, PPF may be convex to the origin. In other words, less and fewer units of one commodity are surrendered in order to obtain an extra unit of another. Hence, the correct option is 1.