Author Question: Which of the following is a condition for efficiency in the output market? A) MRT = MPL/MPK B) ... (Read 200 times)

Mr. Wonderful · **on:** Jul 1, 2018

Which of the following is a condition for efficiency in the output market?

A) MRT = MPL/MPK
B) The marginal rate of substitution is the same for all customers.
C) The marginal rate of technical substitution must be the same for all producers.
D) The marginal rate of transformation must equal the marginal rate of substitution.

Question 2

Refer to Scenario 12.2. Suppose that the marginal cost falls such that:

MC = Q - 10
What is the profit maximizing level of output?
A) 171.43
B) 120
C) 150
D) all of the above
E) none of the above