In the Paper-Water Economy, Which of the Following Is Not

question 34

Multiple Choice

In the paper-water economy, which of the following is not a condition for Pareto optimality?

• A) the MRTS of the paper mill must be greater than the MRTS of the water treatment plant
• B) the MRS of paper for water must be the same for each agent in the society
• C) the MRS of water and paper must equal the MRTS of water for paper

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