There are two consumers in the market,Jack and Jane.Each have some coffee and candies (coffee on the horizontal axis) .Jack's MRS of candies for coffee is 3.Jane's MRS of candies for coffee is 3.Which one of the following statements is incorrect?
A) This allocation is on the contract curve.
B) This can be a competitive equilibrium.
C) This allocation is Pareto efficient.
D) We can reallocate goods so as to make one person better off without harming another.
Correct Answer:
Verified
Q44: In a competitive market,prices adjust until all
Q48: The fact that any pareto efficient equilibrium
Q49: The fact that at the competitive equilibrium
Q50: Consider a society consisting of just a
Q50: Explain why Robin Hood's practice of stealing
Q51: According to the Fundamental Theorems of Welfare
Q53: Consider a society consisting of just a
Q54: A competitive equilibrium is not Pareto efficient
Q57: A competitive equilibrium is Pareto efficient because
Q59: In a competitive marketplace,prices adjust until
A) MRS's
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents