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Question: 1 the points c to d are pareto effecient allocations...

Question details

1. The points C to D are pareto effecient allocations. Why is it pareto effecient allocations?

2. What is reservation indifference curve?

 

 

The Pareto efficiency curve : All the points making up the line between C and D are Pareto-efficient allocations, at which MRS = MRT. The surplus of 4.5 bushels (CD) is shared between Angela and Bruno.

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