Any two goods are said to be efficiently distributed among the consumers if:
A)the ratio of the marginal utilities derived by each consumer from a certain amount of the two goods is equal to the ratio of their prices.
B)the real income of the consumers are equal.
C)every consumer consumes the same amount of the two goods.
D)the marginal rate of substitution between any two goods is equal across consumers.

Question

Quizplus · Accepted Answer

Efficient distribution occurs when the marginal rate of substitution (MRS) between any two goods is equal across consumers, indicating that no further gains from trade can be made.

Any Two Goods Are Said to Be Efficiently Distributed Among