Figure 19-3 Illustrates the Determination of an Efficient Output Mix

Multiple Choice

Figure 19-3 illustrates the determination of an efficient output mix in a two good economy.The output combination is represented by point Z and the consumption point of a representative consumer is W.The slope of the line zz represents the marginal rate of transformation [MRT].
Refer to Figure 19-3.Based on the information given in the figure,we can conclude that:

A) the allocation of inputs is inefficient.
B) the allocation of the given output among the two consumers is efficient.
C) the output mix between goods X and Y is inefficient.
D) a redistribution of the goods will make both the consumers worse off.