In a Competitive General Equilibrium, MRSX,Y = MRTX,Y

question 7

True/False

In a competitive general equilibrium, MRSX,Y = MRTX,Y.

---

Definitions:

Arithmetic Average

The sum of a set of numbers divided by the count of that set of numbers, commonly used to compute simple averages.

Historical Annual Average

An average value calculated from a series of yearly figures, often used in financial analysis to smooth out fluctuations.

Holding-Period Return

Holding-period return is the total return received from holding an asset or portfolio of assets over a specified period, including interest, dividends, and capital gains.

Dividend

A portion of a company's earnings that is distributed to shareholders, usually in the form of cash or additional shares.