Question: Howard said that he was exactly indifferent between consuming four slices of pizza and one beer versus consuming three slices of pizza and two beers.

Howard said that he was exactly indifferent between consuming four slices of pizza and one beer versus consuming three slices of pizza and two beers. He also said that he prefers a bundle consisting of one slice of pizza and three beers to either of the first two bundles. Do Howard’s preferences exhibit diminishing marginal rates of substitution?

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