Multiple Choice
Which of the following is not a reason for solving the model with a PPF?
A) It merges the household and firm problems into one graph.
B) It is simpler to solve the social planner problem.
C) It highlights the fact that the marginal rate of substitution should equal the marginal rate of transformation.
D) It highlights the fact that firms make no profit in equilibrium.
Correct Answer:
Verified
Correct Answer:
Verified
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