A General Competitive Equilibrium in Input Markets

Multiple Choice

A general competitive equilibrium in input markets:

A) is attained at a point where the isoquants of the two goods intersect each other.
B) involves an allocation of inputs such that the ratio of the input prices equals the ratio of the marginal revenue of the firms.
C) is shown by an allocation of inputs that lies on the contract curve of an Edgeworth production box.
D) is essentially related to an inefficient allocation of inputs between the production of any two commodities.