Two individuals, and , consume two goods, and . Consumer initially has 3 units of and 2 units of . Consumer B initially has 5 units of and 6 units of . Also, for Consumer A the and for Consumer the . Does this initial allocation of and represent an efficient allocation?
A) Yes
B) No, because both consumers could be made better off by giving A more and less .
C) No, because both consumers could be made better off by giving A more and less .
D) Cannot be determined from the given information.
Correct Answer:
Verified
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