Multiple Choice
In order to assure allocative efficiency,
A) people's marginal rate of substitution must equal the economy's rate of product transformation.
B) people's marginal rate of substitution must equal the firm's rate of technical substitution among inputs.
C) a firm's rate of technical substitution must equal the economy's rate of product transformation.
D) all of the other answers are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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