Two Individuals $\mathrm { A }$ And $\mathrm { B }$ , Consume Two Goods

Multiple Choice

Two individuals, $\mathrm { A }$ and $\mathrm { B }$ , consume two goods, $x$ and $y$ . Consumer $\mathrm { A }$ initially has 3 units of $x$ and 2 units of $y$ . Consumer B initially has 5 units of $x$ and 6 units of $y$ . Also, for Consumer A the $M R S _ { x , y } ^ { A } = \frac { 5 x } { 3 y }$ and for Consumer $\mathrm { B }$ the $M R S _ { x , y } ^ { B } = \frac { 3 x } { y }$ . Does this initial allocation of $x$ and $y$ represent an efficient allocation?

A) Yes
B) No, because both consumers could be made better off by giving A more $x$ and less $y$ .
C) No, because both consumers could be made better off by giving A more $y$ and less $x$ .
D) Cannot be determined from the given information.