In an Economy Consisting of Only Two Goods,corn and Cloth,the

question 5

Multiple Choice

In an economy consisting of only two goods,corn and cloth,the amount of extra cloth that can be produced efficiently if corn output is reduced by one unit is equal to

• A)the rate of technical substitution for corn divided by the rate of technical substitution for cloth.
• B)the rate of technical substitution for cloth divided by the rate of technical substitution for corn.
• C)the marginal cost of producing cloth divided by the marginal cost of producing corn.
• D)the marginal cost of producing corn divided by the marginal cost of producing cloth.

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