Adelino and Benito consume only two goods, X and Y.They trade only with each other and there is no production.Adelino's utility function is given by U(xA, yA) = 2xA + 5yA and Benito's utility function is given by U(xB, yB) = 2(6xB + 15yB) 1/2.In the Edgeworth box constructed for Adelino and Benito, the set of Pareto optimal allocations is
A) the main diagonal.
B) both diagonals.
C) the entire contents of the Edgeworth box.
D) the right and left edges of the box.
E) the upper and lower edges of the box.
Correct Answer:
Verified
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