Which of the Following Is a Necessary Condition for an Economy's

question 41

Multiple Choice

Which of the following is a necessary condition for an economy's product- mix to be efficient?

• A)Producers have identical marginal rates of transformation.
• B)Marginal rates of substitution and transformation differ.
• C)Consumers have identical marginal rates of substitution.
• D)Marginal products are identical.

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Definitions:

Dividends

A portion of a company's earnings that is distributed to shareholders.

Voting Rights

The privileges granted to shareholders to vote on matters affecting the company they have invested in.

Cash Dividend

A payment made by a company out of its earnings to shareholders, typically in the form of cash.