Competition results in the efficient output mix because Select one: a. producers set MRT equal to the price ratio and consumers set MRS equal to the price ratio, so that the MRT equals the MRS of consumer b. consumers are on the contract curve. c. the slope of the production possibility frontier is equal to the price ratio. d. the distribution of the final output is Pareto efficient.

Competition results in the efficient output mix because Select one: a. producers set MRT equal to the price ratio and consumers set MRS equal to the price ratio, so that the MRT equals the MRS of consumer b. consumers are on the contract curve. c. the slope of the production possibility frontier is equal to the price ratio. d. the distribution of the final output is Pareto efficient.

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter3: Demand, Supply, And The Market Process

Section: Chapter Questions

Problem 10CQ

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