Question: The output efficiency condition applies both when firms produce different products (like food and housing), and when they produce the same product. For example, suppose

The output efficiency condition applies both when firms produce different products (like food and housing), and when they produce the same product. For example, suppose firms A and B both produce apples, and that A's apples are perfect substitutes for B's. In this case, the output efficiency condition tells us to allocated inputs between firms A and B so as to maximize total apple production. Explain why. (Your answer should explain why that conclusion follows from the equivalence between marginal rates of substitution and transformation for the products of firms A and B).

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