(Figure: Crumpets and Tea II) If the Economy Is at Point

Multiple Choice

(Figure: Crumpets and Tea II) If the economy is at point B, the input mix is:

A) not Pareto-efficient; a movement to point C or point D would be a Pareto improvement.
B) Pareto-efficient; a movement to any other point would be Pareto-inefficient.
C) not Pareto-efficient; only a movement to point D would be a Pareto improvement.
D) not Pareto-efficient; a movement to point C or point D would be Pareto-inefficient.