Multiple Choice
The market equilibrium in a many-person setting is an:
A) efficient allocation even though the terms of exchange are indeterminate.
B) efficient allocation because all traders face the same prices.
C) inefficient allocation.Although each pair of traders may arrive at the contract curve,the marginal rates of substitution for different trading pairs may not be equal.
D) inefficient allocation because not everyone likes the prices the market sets.
Correct Answer:
Verified
Correct Answer:
Verified
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