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.

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.

Answer

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

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

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