Solved

Trade Between Two Consumers Will Continue Until It Is No

Question 12

Multiple Choice

Trade between two consumers will continue until it is no longer mutually beneficial.This does not imply that the final outcome will be a unique equilibrium because _____.


A) the exchange is not competitive
B) the consumers are both price takers
C) the Pareto optimality condition is not satisfied
D) the marginal rates of substitution differ for both consumers

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions