Which of the following statements is both correct and the most complete answer?

Question

Which of the following statements is both correct and the most complete answer?

A) The marginal rate of transformation of good X for good Y, MRTXY, describes the rate at which good X can be substituted for good Y in production.

B) The marginal rate of substitution of good X for good Y by individual i, MRSiXY, describes the rate at which individual i is willing to substitute good X for good Y.

C) In competitive equilibrium, if goods are divisible, every individual will have have the same MRSXY

D) All of the answers about MRS and/or MRT are correct

E) Some, but not all, of the answers about MRS and/or MRT are correct

F) In competitive equilibrium, if goods are divisible in production and consumption, Fred's MRS between X and Y will equal the MRTXY.

DONT GIVE ME THE WRONG ANSWER!!!!!!!!

Explanation / Answer

Answer is D. Both A, B are true according to definition. In case of c in competitive equilibrium prices of goods are equated to Mrs. So Mrs will also be equal

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