Competition results in the efficient output mix because Select one: a. producers set MRT equal to the price ratio and consumers set MRS equal to the price ratio, so that the MRT equals the MRS of consumer b. consumers are on the contract curve. c. the slope of the production possibility frontier is equal to the price ratio. d. the distribution of the final output is Pareto efficient.

Competition results in the efficient output mix because Select one: a. producers set MRT equal to the price ratio and consumers set MRS equal to the price ratio, so that the MRT equals the MRS of consumer b. consumers are on the contract curve. c. the slope of the production possibility frontier is equal to the price ratio. d. the distribution of the final output is Pareto efficient.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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