If the marginal rates of technical substitution between inputs are not equal among firms,it means that:
A)output is being inefficiently distributed.
B)the ratio of the input prices is greater than the ratio of the product prices.
C)output is not being maximized,given available inputs.
D)input markets are not in equilibrium.

Question

Quizplus · Accepted Answer

If the marginal rates of technical substitution between inputs are not equal among firms, it suggests that some firms are not maximizing their output given the available inputs. This can result in inefficiencies and lower productivity.

If the Marginal Rates of Technical Substitution Between Inputs Are