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If the Marginal Rate of Substitution Between Two Goods Is

Question 20

Multiple Choice

If the marginal rate of substitution between two goods is not equal for Jack and Jill it means that:


A) both could be made better off with a different distribution of goods between them.
B) the efficient output mix is not being produced.
C) inputs are being allocated inefficiently.
D) the quantity supplied does not equal the quantity demanded.

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