A competitive equilibrium is efficient in the production and exchange
A competitive equilibrium is efficient in the production and exchange of two goods X and Y when
A) MRSXY = MRTLK (where L = labor input and K = capital input).
B) MRTXY = MRSLK (where L = labor input and K = capital input).
C) MRSXY = MRTXY.
D) MCX/MCY = PY/PX.
ANSWER
C
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