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

---

Definitions:

Primary

Relating to the first or earliest stage, level, or period; often signifies something that is of most importance.

Secondary

Pertains to the second level or stage in a sequence, often referring to education that follows primary or elementary education.

Capitalist Economy

An economic system based on private ownership of the means of production and the creation of goods or services for profit.

Regulation

The establishment of rules by government or other authorities to control or govern conduct within a specific area.