(Figure: Pancakes and Cereal I) Which of the Following Statements

question 25

Multiple Choice

(Figure: Pancakes and Cereal I) Which of the following statements is (are) TRUE at point I? I. The economy is achieving input efficiency.
II) The economy is achieving exchange efficiency.
III) The economy is achieving output efficiency because the marginal rate of substitution equals the marginal rate of transformation.

• A) III
• B) I and II
• C) I, II, and III
• D) II

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