In equilibrium with an Edgeworth production box
A)MPK/MPL = PL/PK.
B)one is on the contract curve.
C)the production of one good could increase without decreasing the production of the other.
D)MPK * MPL = PL * PK.
E)All of these are true

Question

Quizplus · Accepted Answer

In equilibrium, the allocation is on the contract curve, where no reallocation can make one better off without making the other worse off.

In Equilibrium with an Edgeworth Production Box