Two individuals, A and B, consume two goods, and . Together they have 4 units of and 8 units of . For Consumer A the and for Consumer B the . Which of the following allocations is an efficient allocation of goods and ?
A) Consumer A has 5 units of and 3 units of
, and Consumer B has 3 units of and 1 unit of .
B) Consumer A has 3 units of and 5 units of
, and Consumer B has 1 unit of and 3 units of .
C) Consumer A has 2 units of and 6 units of
, and Consumer B has 6 units of and 2 units of .
D) Consumer A has 7 units of and 2 units of , and Consumer B has 1 unit of and 6 units of .
Correct Answer:
Verified
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