The above figure depicts the Edgeworth box for two individuals, ...

[acc299]

Thanks

[hanadaa]

Welcome

[acc299]

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.

[alexanderhamilton]

c.

[Garrulous]

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]

Al's MRS exceeds Bruce's MRS.

[Garrulous]

Thanks

[meow1234]

Welcome

[go.lag]

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.

[cassie_ragen]

All of the above.