In an Edgeworth box,all Pareto-optimal allocations lie within the region of mutual advantage.

Name: In an Edgeworth box,all Pareto-optimal allocations lie within the region of mutual advantage.
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Quizplus · Accepted Answer

Pareto-optimal allocations are represented by the contract curve in an Edgeworth box, which may not necessarily lie entirely within the region of mutual advantage, as this region is defined by the initial endowments and preferences of the parties involved.

In an Edgeworth Box,all Pareto-Optimal Allocations Lie Within the Region