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In Free Exchange Among Two Individuals the Position on the Contract

Question 1

Multiple Choice

In free exchange among two individuals the position on the contract curve finally arrived at will,among other things,depend on:
I.The bargaining strength of each individual.
II.The initial endowments of the individuals.
III.The individuals' preferences.
Which of these correctly completes the statement?


A) II and III, but not I.
B) Only II.
C) I and III, but not II.
D) I, II, and III.

Correct Answer:

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