Suppose MRTS Is Not the Same Across All Producers

question 45

Multiple Choice

Suppose MRTS is not the same across all producers. In this case, the economic outcome is not fully efficient because:

• A) exchange is inefficient.
• B) the use of inputs in production is inefficient.
• C) the mix of outputs in inefficient.
• D) none of the above

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Definitions:

Social Stratification

The emergence of social classes, a series of ranked social categories according to characteristics such as wealth, occupation, or kin group.

Bugis

An ethnic group from the island of Sulawesi in Indonesia, known for their maritime culture and significant historical role in trade within Southeast Asia.

Sulawesi

An Indonesian island known for its varied geography, diverse cultures, and unique wildlife.

Ramadan

The ninth month of the Islamic calendar, observed by Muslims worldwide as a month of fasting, prayer, reflection, and community.