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-In Figure 21

Question 7

Multiple Choice

-In Figure 21.4, point z is halfway on a line between the no-trade allocation at point f and the no-advantage allocation at point m. Yet point z has higher utility than the other two points. This is because of which assumption? A) selfishness B) convex preferences C) increasing returns to scale
-In Figure 21.4, point z is halfway on a line between the no-trade allocation at point f and the no-advantage allocation at point m. Yet point z has higher utility than the other two points. This is because of which assumption?


A) selfishness
B) convex preferences
C) increasing returns to scale

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