Multiple Choice
In order to assure allocative efficiency:
A) people's marginal rate of substitution must equal the economy's rate of product transformation.
B) people's marginal rate of substitution must equal the firm's rate of technical substitution among inputs.
C) a firm's rate of technical substitution must equal the economy's rate of product transformation.
D) all of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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