For an individual consumer, a corner solution may be optimal such that

For an individual consumer, a corner solution may be optimal such that MRS and MRT are not equal,

A) but this is not possible in an Edgeworth Box due to the transitivity of preferences.
B) but this is not possible in an Edgeworth Box because price ratios must be positive.
C) and this may also occur in an Edgeworth Box.
D) and this may only occur in an Edgeworth Box under the perfect complements case.

 

ANSWER

C

 

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