The Exchange Efficiency Condition Holds

question 48

Multiple Choice

The exchange efficiency condition holds:

• A) if every pair of individuals has inverse marginal rates of substitution for every pair of goods.
• B) if every pair of individuals shares the same marginal rate of substitution for every pair of goods.
• C) if every pair of individuals consumes the same quantities of every pair of goods.
• D) if every pair of individuals have the same level of utility.