If MRS > MRT, then the consumer is better off than at equilibrium

Indicate whether the statement is true or false


False . MRS > MRT implies that the consumer values the next unit of "x" more than it costs to obtain it. That is, there is a gain from trade to be made. As more "x" is purchased, MRS falls and eventually MRS = MRT. At this point, all gains from trade have been made.

Economics

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Economics