Which of the Following Is Not a Necessary Condition for Economic

question 88

Multiple Choice

Which of the following is not a necessary condition for economic efficiency in competitive markets?

• A)The marginal rates of substitution of all goods across all consumers are equal.
• B)The prices of productive inputs are the same across all productive uses.
• C)The marginal rates of technical substitution are the same across all firms and industries.
• D)The marginal rates of substitution of two goods across all consumers will equal the marginal rates of transformation of the two goods.

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Definitions:

Manufacturing Costs

Manufacturing costs include all expenses directly involved in the production of goods, such as raw materials, labor, and overhead costs.

Subsequent Period

A time frame that follows the current or initial period, often used in accounting and financial reporting.

Accumulating

The process of gathering or increasing quantities over time, whether it relates to interest, investments, or other assets.

Assigning Manufacturing Costs

The process of allocating direct and indirect costs to the production of goods.