An Efficient Allocation of Productive Inputs Requires That

question 24

Multiple Choice

An efficient allocation of productive inputs requires that:

• A)each output has the same rate of technical substitution among inputs used.
• B)each output has the same marginal rate of substitution for consumers.
• C)each pair of outputs has the same rate of product transformation.
• D)each individual has the same marginal rate of substitution between outputs.

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Definitions:

Credibility

The quality of being trusted and believed in.

Varied Vocabulary

The use of a wide range of words to enhance communication clarity and effectiveness.

Jargon

Special words or expressions used by a particular profession or group that are difficult for others to understand.

Contextual Forces

Factors in the environment or situation that influence the context within which an event occurs or a decision is made.