An efficient allocation of productive inputs requires that:
A)each output has the same rate of technical substitution among inputs used.
B)each output has the same marginal rate of substitution for consumers.
C)each pair of outputs has the same rate of product transformation.
D)each individual has the same marginal rate of substitution between outputs.

Question

Quizplus · Accepted Answer

The efficient allocation of productive inputs requires that each output has the same rate of technical substitution among inputs used. This is because if the rate of technical substitution is not the same, then it is possible to increase the output of one good without decreasing the output of another good.

An Efficient Allocation of Productive Inputs Requires That