Figure 19-3 Illustrates the Determination of an Efficient Output Mix

question 10

Multiple Choice

Figure 19-3 illustrates the determination of an efficient output mix in a two good economy.The output combination is represented by point Z and the consumption point of a representative consumer is W.The slope of the line zz represents the marginal rate of transformation [MRT].
Refer to Figure 19-3.Based on the information given in the figure,we can conclude that:

• A)the allocation of inputs is inefficient.
• B)the allocation of the given output among the two consumers is efficient.
• C)the output mix between goods X and Y is inefficient.
• D)a redistribution of the goods will make both the consumers worse off.

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Definitions:

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The shedding of the uterine lining (endometrium) that occurs in the absence of pregnancy, resulting in bleeding from the vagina.

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