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In Free Exchange Among Two Individuals the Position on the Contract

Question 22

Multiple Choice

In free exchange among two individuals the position on the contract curve finally arrived at will,among other things,depend on: Which of these correctly completes the statement?
I.The bargaining strength of each individual.
II.The initial endowments of the individuals.
III.The individuals' preferences.


A) Only III.
B) Only II.
C) I and III,but not II.
D) II and III,but not I.
E) I,II,and III.

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