-The above figure depicts the Edgeworth box for two individuals,Al and Bruce.Point c is Pareto efficient because

Question

Quizplus · Accepted Answer

In the context of an Edgeworth box, a point is Pareto efficient if the marginal rates of substitution (MRS) of the two individuals are equal, their indifference curves are tangent at that point, and no further mutual gains from trade can be made. All these conditions are met at point c, making it a Pareto efficient point.

-The Above Figure Depicts the Edgeworth Box for Two Individuals,Al