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Figure 16.4.1 -A Competitive Equilibrium Is Efficient in the Production and Exchange

Question 71

Multiple Choice

Figure 16.4.1
-A competitive equilibrium is efficient in the production and exchange of two goods X and Y when:


A) MRSXY = MRTLK (where L = labor input and K = capital input) .
B) MRTXY = MRSLK (where L = labor input and K = capital input) .
C) MRSXY = MRTXY.
D) MCX/MCY = PY/PX.

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