In an economy which produces two goods X and Y, using two inputs L and K, efficient input use occurs when

Name: In an economy which produces two goods X and Y, using two inputs L and K, efficient input use occurs when
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Quizplus · Accepted Answer

Efficient input use occurs when the marginal rate of technical substitution (MRTS) between inputs L and K is equal for both goods X and Y, ensuring that inputs are allocated optimally across the production of both goods.

In an Economy Which Produces Two Goods X and Y