Figure 16.4.1 -A Competitive Equilibrium Is Efficient in the Production and Exchange

question 71

Multiple Choice

Figure 16.4.1
-A competitive equilibrium is efficient in the production and exchange of two goods X and Y when:

• A) MRS_XY = MRT_LK (where L = labor input and K = capital input).
• B) MRT_XY = MRS_LK (where L = labor input and K = capital input).
• C) MRS_XY = MRT_XY.
• D) MC_X/MC_Y = P_Y/P_X.

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Definitions:

Splined Stubb

A short shaft or rod with grooves along its length used to provide a secure rotational fit with another splined part.

Internal Splines

Grooves or teeth cut internally into a hole, designed to fit with corresponding external splines for torque transmission.

Hardened

A process or condition of making or becoming more rigid, tough, or resistant usually through heat treatment or alloys in metals.

Vocational Off-highway

Pertaining to specialized vehicles used in industries such as construction, mining, and agriculture that operate primarily off public roads.