Economics · General Equilibrium
In a general equilibrium framework, which condition guarantees Pareto efficiency in PRODUCTION?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1The ratio of marginal products equals the ratio of consumer marginal utilities.
- 2The marginal rate of transformation (MRT) equals the marginal rate of substitution (MRS) for all consumer-producer pairs.
- 3The marginal rate of technical substitution (MRTS) between any two inputs must be equal across all firms producing goods.✓
- 4MRTSKL is equal for all consumers across all industries.
Correct answer
The marginal rate of technical substitution (MRTS) between any two inputs must be equal across all firms producing goods.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice General Equilibrium MCQs →Want more practice questions on General Equilibrium?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · General Equilibrium