Assume That Bill and Terry Consume Two Goods,X and Y,so

Multiple Choice

Assume that Bill and Terry consume two goods,X and Y,so that their marginal rates of substitution are equal.Under these conditions we can conclude that:

A) any trade between Bill and Terry will be mutually beneficial.
B) trade can benefit Bill but not affect Terry.
C) there can be no mutually beneficial trades.
D) the potential to trade would depend on Bill's and Terry's bargaining skills.