When all producers in an economy have identical marginal rates of technical substitution and all resources are used to produce goods, the:
A)bundle of goods produced is on the production possibilities frontier.
B)economy is in general equilibrium.
C)marginal rate of transformation equals the common marginal rate of technical substitution.
D)product mix is efficient.

Question

Quizplus · Accepted Answer

The Answer of When all producers in an economy have identical marginal rates of technical substitution and all resources are used to produce goods, the:
A)bundle of goods produced is on the production possibilities frontier.
B)economy is in general equilibrium.
C)marginal rate of transformation equals the common marginal rate of technical substitution.
D)product mix is efficient.

When All Producers in an Economy Have Identical Marginal Rates