Suppose an economy produces milk and honey, and milk is plotted along the horizontal axis of the production possibilities frontier. The MRT is 2.5 at the current point of production, and the price of honey is $5 per unit
What is the current price of milk if the market outcome is efficient? A) $12.50 per unit
B) $10 per unit
C) $2 per unit
D) $1 per unit
C
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Because resources are scarce, a society cannot give all individuals the standard of living to which each aspires
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What will be an ideal response?