The efficiency in production requires:
A)MRT is equal to MRTS for all firms.
B)each consumer's MRS is identical with MRT.
C)MRTS are identical for all firms.
D)efficiency of the product mix.

Question

Quizplus · Accepted Answer

The marginal rate of technical substitution (MRTS) reflects how much of one input can be replaced with another without affecting output. When MRTS is equal among all firms, it means that they are all operating at the same level of technical efficiency. Therefore, option C is the correct answer. Options A and B do not necessarily ensure efficiency in production, while option D is vague and does not provide a clear explanation.

The Efficiency in Production Requires