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Two Individuals A\mathrm { A } And B\mathrm { B } , Consume Two Goods

question 44

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Two individuals, A\mathrm { A } and B\mathrm { B } , consume two goods, xx and yy . Consumer A\mathrm { A } initially has 3 units of xx and 2 units of yy . Consumer B initially has 5 units of xx and 6 units of yy . Also, for Consumer A the MRSx,yA=5x3yM R S _ { x , y } ^ { A } = \frac { 5 x } { 3 y } and for Consumer B\mathrm { B } the MRSx,yB=3xyM R S _ { x , y } ^ { B } = \frac { 3 x } { y } . Does this initial allocation of xx and yy represent an efficient allocation?

Comprehend the definition and calculation of opportunity cost and its significance in economic decision-making.
Analyze the effects of trade and specialization on an economy's production and consumption possibilities.
Distinguish between absolute and comparative advantage in trade relationships.
Recognize the conditions under which economies or individuals can benefit from trade, even when one party is more efficient in all areas of production.

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