This topic contains a solution. Click here to go to the answer

Author Question: The above figure depicts the Edgeworth box for two individuals, Al and Bruce. Part of the contract ... (Read 185 times)


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

acc299

  • Hero Member
  • *****
  • Posts: 569


The above figure depicts the Edgeworth box for two individuals, Al and Bruce. If the endowment is at point a, and Al has no ability to bargain, the final allocation will be at point
◦ a.
◦ b.
◦ c.
◦ d.




Garrulous

  • Hero Member
  • *****
  • Posts: 686


The above figure depicts the Edgeworth box for two individuals, Al and Bruce. Point a is NOT Pareto efficient because
◦ Al's indifference curve is not far enough away from the origin.
◦ the point is not near the center of the box.
◦ Al's MRS exceeds Bruce's MRS.
◦ All of the above.



meow1234

  • Sr. Member
  • ****
  • Posts: 333



go.lag

  • Hero Member
  • *****
  • Posts: 667


The above figure depicts the Edgeworth box for two individuals, Al and Bruce. Point c is Pareto efficient because
◦ the MRS's are equal.
◦ no mutual gains from trade exist.
◦ the indifference curves are tangent.
◦ All of the above.




 

Did you know?

Approximately 70% of expectant mothers report experiencing some symptoms of morning sickness during the first trimester of pregnancy.

Did you know?

According to the National Institute of Environmental Health Sciences, lung disease is the third leading killer in the United States, responsible for one in seven deaths. It is the leading cause of death among infants under the age of one year.

Did you know?

Though “Krazy Glue” or “Super Glue” has the ability to seal small wounds, it is not recommended for this purpose since it contains many substances that should not enter the body through the skin, and may be harmful.

Did you know?

Drug-induced pharmacodynamic effects manifested in older adults include drug-induced renal toxicity, which can be a major factor when these adults are experiencing other kidney problems.

Did you know?

Thyroid conditions cause a higher risk of fibromyalgia and chronic fatigue syndrome.

For a complete list of videos, visit our video library