Can consumption efficiency be achieved even if the efficient product mix is not achieved?
What will be an ideal response?
Efficiency in consumption implies that all consumers have the same MRS. This can be achieved with any product mix. Thus, consumers can be as well off as possible for any given product mix. If the product mix is inefficient, consumers can still make the best of it even though a different product mix could make them even better off.
Economics
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The prices of the products in the World War II POW camps, measured in terms of cigarettes, reflected the products'
A) practicality. B) costs of production. C) scarcity. D) retail prices.
Economics
The marginal propensity to consume (MPC) is the fraction of additional income that is spent
Indicate whether the statement is true or false
Economics