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Author Question: You value your economics textbook at $10. Someone else values it at $25, and that person is willing ... (Read 14 times)

captainjonesify

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on: Apr 19, 2019

You value your economics textbook at $10. Someone else values it at $25, and that person is willing to pay you $20 for your textbook. Would selling your textbook to this person for $20 be Pareto efficient?


◦ No, because you did not receive the maximum amount the other person would have been willing to pay for the textbook.
◦ No, the person paid you $20 for the book so his net benefit was only $5, whereas your net benefit was $10. For this change to be Pareto efficient, each of you should have the same net benefit.
◦ Yes, because both of you are better off as a result of the trade.
◦ Yes, because even though you gain from the trade and he loses, there is the potential for you to compensate him for his loss.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
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Marked as best answer by captainjonesify on Apr 19, 2019

ilianabrrr

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Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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captainjonesify

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Reply #2 on: Apr 19, 2019
TY


ilianabrrr

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Reply #3 on: Apr 19, 2019
You're welcome


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