In Order to Assure Allocative Efficiency

question 12

Multiple Choice

In order to assure allocative efficiency:

• A)people's marginal rate of substitution must equal the economy's rate of product transformation.
• B)people's marginal rate of substitution must equal the firm's rate of technical substitution among inputs.
• C)a firm's rate of technical substitution must equal the economy's rate of product transformation.
• D)all of the above.

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Definitions:

Ascomycota

A phylum of fungi characterized by the formation of spores in a specialized sac-like structure known as an ascus.

Morels

A type of edible wild mushroom known for its honeycomb appearance, found in wooded areas in the spring.

Chytridiomycota

A phylum of fungi known for their motile spores, implicated in global amphibian declines due to a disease they cause.

Ascomycota

A division of fungi characterized by the formation of spores in a sac-like structure called an ascus.