In a two-agent two-good economy, a Pareto-efficient allocation implies
In a two-agent two-good economy, a Pareto-efficient allocation implies that
A) no further mutually beneficial trades are possible.
B) agents’ indifference curves intersect each other.
C) agents’ marginal rate of substitution are different.
D) agents’ marginal rate of transformation are different.
ANSWER
A
Expert paper writers are just a few clicks away
Place an order in 3 easy steps. Takes less than 5 mins.