A competitive economy has many consumers, many producers, two goods (A and B) and two inputs (L and K). Which of the following are conditions for a competitive general equilibrium in this economy? (Select all that applies) O a) MRTAB = MCA / MCB for all producers O b) MRSAB = PA / PB for all consumers O c) MRTS between labour and capital is the same for all firms producing good A O d) MRTS between labour and capital is the same for all fırms, whether producing good A or good B. O e) MRT = MRTS for all producers O f) MRS = MRT O g) MRS = MRTS O h) PA = MCA and PB = MCB O i) PA = PB and MCa = MCB O j) MRTS = PA / PB

A competitive economy has many consumers, many producers, two goods (A and B) and two inputs (L and K). Which of the following are conditions for a competitive general equilibrium in this economy? (Select all that applies) O a) MRTAB = MCA / MCB for all producers O b) MRSAB = PA / PB for all consumers O c) MRTS between labour and capital is the same for all firms producing good A O d) MRTS between labour and capital is the same for all fırms, whether producing good A or good B. O e) MRT = MRTS for all producers O f) MRS = MRT O g) MRS = MRTS O h) PA = MCA and PB = MCB O i) PA = PB and MCa = MCB O j) MRTS = PA / PB

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter13: General Equilibrium And Welfare

Section: Chapter Questions

Problem 13.3P

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