Multiple Choice
(Figure: Crumpets and Tea I) Which of the following allocations represents a Pareto improvement from point A? I. Lucia consumes 3 cups of tea and 3 crumpets, and Mateo consumes 3 cups of tea and 4 crumpets.
II) Lucia consumes 3 cups of tea and 4 crumpets, and Mateo consumes 3 cups of tea and 3 crumpets.
III) Lucia consumes 2 cups of tea and 4 crumpets, and Mateo consumes 4 cups of tea and 3 crumpets.
A) II and III
B) II
C) I and III
D) I, II, and III
Correct Answer:

Verified
Correct Answer:
Verified
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