Question

Match List-I with List-II.

List-I	List-II
A. Efficiency in exchange	I. Externalities
B. Efficiency in the use of inputs	II. \(MRS^A_{xy}=MRS^B_{xy}\)
C. Efficiency in the output market	III. \(MRTS^X_{LK}=MRTS^Y_{LK}\)
D. Market failure	IV. \(MRT_{xy}=MRS_{xy}\)

• A. A-II, B-III, C-IV, D-I
• B. A-II, B-IV, C-I, D-III
• C. A-IV, B-II, C-I, D-III
• D. A-III, B-IV, C-II, D-I

Hint:

Efficiency in exchange uses \(MRS\), efficiency in production uses \(MRTS\), and product-mix efficiency uses \(MRT=MRS\).

Answer 1

The Correct Option is A