Suppose that two individuals have the same tastes and the same initial endowments. What can you say about the efficiency of the allocation which corresponds to the initial endowment? By way of explanation, illustrate using an Edgeworth box to show what is going on.© BrainMass Inc. brainmass.com March 4, 2021, 9:36 pm ad1c9bdddf
With same tastes and initial endowment the allocation will be Pareto Optimal. This can be illustrated using the ...
Edgeworth box problem is depicted.