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If the Marginal Rates of Technical Substitution Between Two Firms

Question 66

Multiple Choice

If the marginal rates of technical substitution between two firms are not equal,then:


A) the society is not on the production possibility frontier.
B) the economy ends up producing on the contract curve of the economy's Edgeworth production box.
C) goods are not allocated between consumers efficiently.
D) the isoquants of the firms do not intersect each other.

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