If the Marginal Rates of Technical Substitution Between Two Firms

question 66

Multiple Choice

If the marginal rates of technical substitution between two firms are not equal,then:

• A)the society is not on the production possibility frontier.
• B)the economy ends up producing on the contract curve of the economy's Edgeworth production box.
• C)goods are not allocated between consumers efficiently.
• D)the isoquants of the firms do not intersect each other.

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