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May and Noon Both Like My Little Pony Toys and Matchbox

Question 66

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May and Noon both like My Little Pony toys and Matchbox cars. What is the value of each child's marginal rate of substitution at point A? Explain whether that point is or is not a Pareto-efficient outcome. May and Noon both like My Little Pony toys and Matchbox cars. What is the value of each child's marginal rate of substitution at point A? Explain whether that point is or is not a Pareto-efficient outcome.

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Since the indifference curves are tangen...

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