An Economy Produces Outputs X and Y Using Inputs L

Multiple Choice

An economy produces outputs X and Y using inputs L and K. Which of the following is NOT required for economic efficiency?

A) MRTS_LK = MRS_XY for all producers and consumers.
B) MRT_XY = MRS_XY for all producers and consumers.
C) MRS_XY is equal for all consumers.
D) MRTS_LK is equal for all producers.
E) None of the above. All of these are required for economic efficiency.