Explore BrainMass

Explore BrainMass

    Edgeworth Box problem

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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
    https://brainmass.com/economics/contracts/edgeworth-box-problem-257972

    Solution Preview

    With same tastes and initial endowment the allocation will be Pareto Optimal. This can be illustrated using the ...

    Solution Summary

    Edgeworth box problem is depicted.

    $2.49

    ADVERTISEMENT