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One of the conditions for economic efficiency with respect to any two private goods is that their marginal rate of substitution is equal to their

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One of the conditions for economic efficiency with respect to any two private goods is that their marginal rate of substitution is equal to their marginal rate of transformation. For example, the condition for wine and bread is MRSWB = MRTWB. A. Explain why this is a necessary condition for economic efficiency. B. Explain why perfectly competitive markets would result in this efficiency condition being satisfied. C. Suppose that the wine industry is perfectly competitive and the bread industry is a monopoly. Explain why the MRSWB = MRTWB condition will not satisfied. What will be the effect, if any, on the amount of wine relative to the efficient amount

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