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Brenda has learned to take an over-the-counter medication 30 minutes before she eats a spicy meal. When she does this, she is able to prevent the heartburn and indigestion that she would experience otherwise. This is an example of
Initial Endowment
The initial allocation of assets, goods, or resources that an individual or entity possesses before any transactions.
Pareto Optimal
An economic state where it is impossible to make one party better off without making at least one party worse off.
Utility Function
A numerical depiction of the way in which customers gain pleasure or benefit from the consumption of products and services.
Initial Endowment
The initial allocation of resources, goods, or wealth with which individuals or entities start in an economic model or real-life scenario.
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