Why does optimum adjustment of production require equality of the marginal rate of sub- stitution and the

Question:

Why does optimum adjustment of production require equality of the marginal rate of sub-

stitution and the marginal rate of transformation? What requirements must be fulfilled for this equality to be attained?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Intermediate Microeconomics

ISBN: 9780155414969

1st Edition

Authors: Robert W. Clower, Philip E. Graves

Question Posted: