Multiple Choice
Two individuals,A and B,consume two goods, and
Consumer A initially has 3 units of
and 2 units of
Consumer B initially has 5 units of
and 6 units of
.Also,for Consumer A the
and for Consumer B the
.Does this initial allocation of
and
represent an efficient allocation?
A) Yes
B) No, because both consumers could be made better off by giving A more and less
.
C) No, because both consumers could be made better off by giving A more and less
.
D) Cannot be determined from the given information.
Correct Answer:

Verified
Correct Answer:
Verified
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