Figure 19-3 illustrates the determination of an efficient output mix in a two good economy.The output combination is represented by point Z and the consumption point of a representative consumer is W.The slope of the line zz represents the marginal rate of transformation [MRT].
Refer to Figure 19-3.Based on the information given in the figure,we can conclude that:
A)the allocation of inputs is inefficient.
B)the allocation of the given output among the two consumers is efficient.
C)the output mix between goods X and Y is inefficient.
D)a redistribution of the goods will make both the consumers worse off.

Question

Figure 19-3 illustrates the determination of an efficient output mix in a two good economy.The output combination is represented by point Z and the consumption point of a representative consumer is W.The slope of the line zz represents the marginal rate of transformation [MRT]. 
Refer to Figure 19-3.Based on the information given in the figure,we can conclude that:
A)the allocation of inputs is inefficient. 
B)the allocation of the given output among the two consumers is efficient. 
C)the output mix between goods X and Y is inefficient. 
D)a redistribution of the goods will make both the consumers worse off.

Quizplus · Accepted Answer

The Answer of Figure 19-3 illustrates the determination of an efficient output mix in a two good economy.The output combination is represented by point Z and the consumption point of a representative consumer is W.The slope of the line zz represents the marginal rate of transformation [MRT]. 
Refer to Figure 19-3.Based on the information given in the figure,we can conclude that:
A)the allocation of inputs is inefficient. 
B)the allocation of the given output among the two consumers is efficient. 
C)the output mix between goods X and Y is inefficient. 
D)a redistribution of the goods will make both the consumers worse off.

Figure 19-3 Illustrates the Determination of an Efficient Output Mix