When an economy operates efficiently,
A)the MRPs of every input into the production of a good are equal.
B)marginal utility equals marginal cost for every good.
C)the price of a good equals the sum of the marginal physical products of its inputs.
D)All of the responses are correct.

Question

Quizplus · Accepted Answer

When an economy operates efficiently, resources are allocated such that the marginal utility of a good equals its marginal cost, ensuring optimal consumption and production levels.

When an Economy Operates Efficiently