Multiple Choice
How does a competitive exchange differ from a two-person model of exchange?
A) The Pareto criterion is satisfied only in a competitive exchange and not in a two-person exchange.
B) In two-person exchanges,the exact outcome of bargaining cannot be predicted unlike with a competitive exchange.
C) The outcomes of two-person exchanges tend to be more equitable than competitive exchanges.
D) In two-person exchanges consumers are price-takers while competitive exchange involves price-makers.
Correct Answer:
Verified
Correct Answer:
Verified
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