In an Edgeworth Box the Line Through All of the Points

question 14

Multiple Choice

In an Edgeworth box the line through all of the points that represent efficient allocations of two goods is called

• A)the core.
• B)the contract curve.
• C)the efficiency curve.
• D)the Pareto curve.

---

Definitions:

Marginal Cost

The financial outlay required to produce one more unit of a product or service.

Public Good

A good that is non-excludable and non-rivalrous, meaning it can be used by many people without depleting its availability to others.

Private Goods

Goods that are both excludable and rival in consumption, meaning only paying customers can use them and one person's use diminishes others' ability to use them.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they are available to all without depletion from use by others.