On the consumption contract curve
A)All indifference curves are crossing
B)All allocations are not Pareto optimal
C)There will be no further voluntary exchange
D)There will be further opportunities for exchange

Question

Quizplus · Accepted Answer

The consumption contract curve represents all the Pareto efficient allocations between the two parties. However, it does not necessarily mean that all allocations on the curve are equally preferred by both parties. Therefore, there may still be opportunities for further voluntary exchange between the parties to achieve a more optimal outcome.

On the Consumption Contract Curve