Which of the following is a condition for efficiency in the output market?
A) MRT = MPL/MPK
B) The marginal rate of substitution is the same for all customers.
C) The marginal rate of technical substitution must be the same for all producers.
D) The marginal rate of transformation must equal the marginal rate of substitution.
D
You might also like to view...
Discuss the meaning of the phrase of supply-side economics, discussing how it is similar and different from the traditional classical model. Make sure to discuss the role of the Laffer curve in supply-side theory
What will be an ideal response?
Exhibit 7-12 Marginal revenue and cost per unit curves
?
As shown in Exhibit 7-12, if the price is OD, the firm's total revenue at its most profitable level of output is:
A. OZID. B. OYHD. C. OXLD. D. OYFB.
Number of workersUnits of output00110230344455
Refer to Table 5.1, which gives a firm's production function. Assume that all non-labor inputs are fixed. The marginal product of the fourth worker is:
A. 12 units. B. 11 units. C. 5 units. D. 0 units.
What is marginal utility and what is the law of diminishing marginal utility?
What will be an ideal response?