Figure 6-1 shows the distribution of steak and wine between Monica and Hank.
Figure 6-1
ref SHAPE \* MERGEFORMAT
-Regarding the distribution of steak and wine in Figure 6-1,it is correct to say that:
A)at A,the marginal rates of substitution [MRSs] between steak and wine differ for Hank and Monica.
B)at A,Hank and Monica will engage in further trade which will eventually make one of them worse off.
C)at H,Monica is better off at Hank's expense.
D)trade between Monica and Hank will eventually lead them to the unique efficient outcome K.

Question

Figure 6-1 shows the distribution of steak and wine between Monica and Hank.
Figure 6-1
ref SHAPE \* MERGEFORMAT 
-Regarding the distribution of steak and wine in Figure 6-1,it is correct to say that:
A)at A,the marginal rates of substitution [MRSs] between steak and wine differ for Hank and Monica. 
B)at A,Hank and Monica will engage in further trade which will eventually make one of them worse off. 
C)at H,Monica is better off at Hank's expense. 
D)trade between Monica and Hank will eventually lead them to the unique efficient outcome K.

Quizplus · Accepted Answer

At point A, the MRSs between steak and wine differ for Hank and Monica, indicating that they can still benefit from trade.

Figure 6-1 Shows the Distribution of Steak and Wine Between