In an Edgeworth Production Box Diagram,if Two Isoquants Intersect,it Means

question 21

Multiple Choice

In an Edgeworth production box diagram,if two isoquants intersect,it means that:

• A)the well-being of the two consumers can be improved without changing the output of either good.
• B)the marginal rate of substitution between consumers does not equal the marginal rate of technical substitution.
• C)by allocating inputs differently between firms,output can be increased at no additional cost.
• D)consumers are not facing the same output price ratio.

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Definitions:

Past

The past refers to the time period that has already happened, contrasting with the present and future.

Accept

To receive or agree to take something offered or to acknowledge the truth or validity of something.

Who's

Short for "who is" or "who has," used in questions and relative clauses.

It's

A contraction for "it is" or "it has."