Movement from an inefficient allocation to an efficient allocation in the Edgeworth Box will
A) increase the utility of all individuals.
B) increase the utility of at least one individual,but may decrease the level of utility of another person.
C) increase the utility of one individual,but cannot decrease the utility of any individual.
D) decrease the utility of all individuals.

Question

Quizplus · Accepted Answer

Moving from an inefficient allocation to an efficient allocation means that at least one individual can be made better off without making another individual worse off. However, it is possible that one individual's gain comes at the expense of another individual's loss. Therefore, option B is the best choice.

Movement from an Inefficient Allocation to an Efficient Allocation in the Edgeworth