The production contract curve:
A) shows every efficient allocation of inputs between two firms in an Edgeworth box.
B) shows every efficient allocation of consumption goods in an Edgeworth box.
C) passes through the intersections between all pairs of isoquants in an Edgeworth box.
D) passes through the intersections between all pairs of indifference curves in an Edgeworth box.

Question

Quizplus · Accepted Answer

The production contract curve represents all efficient allocations of inputs between two firms, where no reallocation can make one firm better off without making the other worse off, within an Edgeworth box.

The Production Contract Curve