Multiple Choice
When two commodities X and Y must be allocated among consumers, a necessary condition for distributive efficiency is that:
A) all firms be price takers.
B) all firms minimize cost.
C) commodity X must be allocated to the consumers with the largest values of MRSXY
D) the marginal rates of substitution MRSXY for all consumers must be equal.
Correct Answer:
Verified
Correct Answer:
Verified
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