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    Exam 5: Welfare Economics and Efficiency Allocation
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    The Marginal Condition for a Pareto-Optimal Allocation of Factors Requires
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The Marginal Condition for a Pareto-Optimal Allocation of Factors Requires

Question 22

Question 22

Multiple Choice

The marginal condition for a Pareto-optimal allocation of factors requires that the ________ between labour and capital be equal for all commodities produced by different firms.


A) MRS
B) MRTS
C) DMR
D) MC

Correct Answer:

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