If the Two Individuals' Indifference Curves Through Their Endowment Bundles

question 17

True/False

If the two individuals' indifference curves through their endowment bundles are tangent to one another at the endowment bundle (in the Edgeworth Box), then the endowment bundle is a competitive equilibrium allocation.

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Definitions:

Middle Term

In a syllogism, the term that appears in both premises but not in the conclusion, used to connect the other two terms of the argument.

Major Term

Refers to the predicate of the conclusion in a categorical syllogism, which is a key component in deductive reasoning.

Middle Term

In syllogistic logic, the term that appears in both premises but not in the conclusion, serving as a link between the major and minor terms.

Major Premise

The first statement in a syllogism, providing a general statement or condition for the argument.