In an Edgeworth Box diagram,showing the distribution of two goods among two individuals:
A)there is one unique efficient point.
B)there are many possible efficient points.
C)if trade occurs among points along the contract curve it will leave both individuals better off.
D)every point of intersection between the two individuals' indifference curves is efficient.

Question

Quizplus · Accepted Answer

In an Edgeworth Box, there are many possible efficient points, represented by the contract curve, where no individual can be made better off without making the other worse off.

In an Edgeworth Box Diagram,showing the Distribution of Two Goods