Which of the following is true about exchange economies?
A) All core allocations are efficient.
B) In 2-person exchange economies, the core is equal to the set of efficient allocations that is also mutually beneficial relative to initial endowments.
C) In n-person exchange economies (with n>2) , the core is smaller than the set of efficient allocations that is also mutually beneficial relative to initial endowments.
D) (a) and (b) are true.
E) (a) and (c) are true.
F) (b) and (c) are true.
G) All of the above are true.
H) None of the above are true.
Correct Answer:
Verified
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