On the boundary of the utility possibility frontier, if the utility of one person increases, that of the other will decline.

Question

Quizplus · Accepted Answer

The boundary of the utility possibility frontier represents the maximum amount of utility that can be achieved by both parties in a trade-off situation. If one person's utility increases beyond this boundary, it means that the other person's utility must have decreased. Therefore, the statement is true.

On the Boundary of the Utility Possibility Frontier, If the Utility