= Convexity in economics
{wiki=Convexity_in_economics}
In economics, convexity refers to the shape of a curve that represents a relationship between two variables, typically in the context of utility functions, production functions, or cost functions. The concept of convexity is crucial in understanding optimization problems, consumer behavior, and market dynamics. Here are some key points about convexity in economics: 1. **Utility Functions**: A utility function is said to be convex if it exhibits diminishing marginal utility.
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