If two individuals voluntarily agree to a transaction that only affects them (and no one else), it must be that the transaction is efficient.

Question

Quizplus · Accepted Answer

If the two individuals voluntarily agree to a transaction, it means that they believe that it is beneficial for both parties. As the transaction only affects them, there are no externalities or third-party effects to consider, and as such, the transaction is efficient.

If Two Individuals Voluntarily Agree to a Transaction That Only