Suppose an economy produces two goods,corn and wine.If the marginal rate of substitution between corn and wine for consumers is not equal to the marginal rate of transformation,it means that:
A) the quantity demanded does not equal the quantity supplied.
B) the economy is operating on the production possibility frontier.
C) both consumers could be made better off with a different distribution of the goods between them.
D) the output mix is not efficient.
Correct Answer:
Verified
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