Solved

When All Producers in an Economy Have Identical Marginal Rates

Question 90

Multiple Choice

When all producers in an economy have identical marginal rates of technical substitution and all resources are used to produce goods, the:


A) bundle of goods produced is on the production possibilities frontier.
B) economy is in general equilibrium.
C) marginal rate of transformation equals the common marginal rate of technical substitution.
D) product mix is efficient.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions