For Pareto efficiency, the MRT should not equal the MRS of all individuals.
A)True
B)False
C)Uncertain

Name: For Pareto efficiency, the MRT should not equal the MRS of all individuals. A)True B)False C)Uncertain
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Question

Quizplus · Accepted Answer

Pareto efficiency requires that the Marginal Rate of Transformation (MRT) equals the Marginal Rate of Substitution (MRS) for all individuals, ensuring that resources are allocated in a way that no one can be made better off without making someone else worse off.

For Pareto Efficiency, the MRT Should Not Equal the MRS