An Allocation Satisfies the Output Efficiency Condition If

question 30

Multiple Choice

An allocation satisfies the output efficiency condition if

• A) For every pair of goods, every input's marginal product equals the marginal rate of transformation
• B) For every pair of goods, every consumer's marginal rate of substitution equals the marginal rate of transformation
• C) Only applies for firms that produce the same product
• D) Only applies for consumers that consume the same goods

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Definitions:

Customer

An individual or entity that purchases goods or services from a business.

Bank Statement

A document issued by a bank that summarizes an account holder's transactions and financial activity over a specified period.

Checking Account

A bank account that allows for numerous withdrawals and deposits, intended primarily for daily transactions.

Check Register

A record book used to track checks written, deposits made, and the current balance of a checking account.