In a two-agent two-good economy, a Pareto-efficient allocation ...

[kfurse]

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.

Question 2

If average cost is decreasing,
 
  A) marginal cost equals average cost.
  B) marginal cost exceeds average cost.
  C) marginal cost is less than average cost.
  D) Not enough information is given.

[britb2u]

Answer to Question 1

A

Answer to Question 2

C