Efficiency in production requires that
A)MRTS is equal across firms
B)MRTS equals MRS
C)MRT equals MRS
D)MRT is equal across firms

Name: Efficiency in production requires that A)MRTS is equal across firms B)MRTS equals MRS C)MRT equals MRS D)MRT is equal across firms
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Question

Quizplus · Accepted Answer

Efficiency in production requires that the Marginal Rate of Technical Substitution (MRTS) is equal across firms to ensure that resources are allocated optimally between them.

Efficiency in Production Requires That