An economy's product- mix is said to be efficient if:
A)all MRSs are the same with the MRT.
B)there is efficiency in production.
C)there is efficiency in consumption.
D)there is efficiency in both production and consumption.

Question

Quizplus · Accepted Answer

The economy's product-mix is considered efficient if all Marginal Rates of Substitution (MRSs) are the same as the Marginal Rate of Transformation (MRT), indicating an optimal allocation of resources where consumer preferences and production capabilities are perfectly aligned.

An Economy's Product- Mix Is Said to Be Efficient If