Suppose MRTS is not the same across all producers. In this case, the economic outcome is not fully efficient because:

A) exchange is inefficient.
B) the use of inputs in production is inefficient.
C) the mix of outputs in inefficient.
D) none of the above

Economic Outcome

The result of economic activities, often measured by metrics such as GDP growth, unemployment rates, and inflation.

Marginal Rate Of Technical Substitution

The rate at which one input can be reduced per additional unit of another input, while maintaining the same level of output.

Efficiency

The optimal use of resources to achieve the desired ends, minimizing waste and maximizing output.