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diminishing marginal utility

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Prove that a diminishing marginal rate of substitution neither implies nor is implied by diminishing marginal utility.

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Solution Summary

Diminishing marginal utility is examined.

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First, I shall remind you that MRS = MUx/MUy, where MUx is the marginal utility of good x. In most textbooks (such as microeconomics by Hal Varian), this is proved, but if you are looking for a proof then http://en.wikipedia.org/wiki/Marginal_rate_of_substitution#Simple_mathematical_analysis shows how you can get MRS = MUx/MUy from the definition.

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