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 above.
a
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Consumption has fallen substantially in Techland due to pessimism among households. What will be the outcome if a contractionary monetary policy is adopted during this period?
What will be an ideal response?
Which of the following factors are held constant for a given demand curve for a good?
A. The price of the good B. The technology used to produce the good C. The supply of the good D. Consumer incomes and the prices of other goods