The figure shows the Pareto efficiency curve CD for the interaction between Angela and Bruno. Read the following statements and select the correct one.
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Question

The figure shows the Pareto efficiency curve CD for the interaction between Angela and Bruno. Read the following statements and select the correct one.

Accepted Answer

Angela’s marginal rate of substitution is equal to the marginal rate of transformation at all points on the Pareto efficiency curve.

Answer

The mid-point of CD is the most Pareto-efficient allocation.

Answer

Angela and Bruno are indifferent between all the points on CD, because they are all Pareto efficient.

Answer

The allocation at C Pareto dominates the one at D.

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The figure shows the Pareto efficiency curve CD for the interaction between Ange...

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