An economy produces two goods with two inputs. Given the current allocation of inputs between the two industries, MRTS₁= 5, and MRTS₂= 3. Check whether the economy is efficient in production. Explain.

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The Answer of An economy produces two goods with two inputs. Given the current allocation of inputs between the two industries, MRTS₁= 5, and MRTS₂= 3. Check whether the economy is efficient in production. Explain.

An Economy Produces Two Goods with Two Inputs