Given an Initial Allocation of Resources That Is Off the Consumption

question 6

Multiple Choice

Given an initial allocation of resources that is off the consumption contract curve, in a perfect market environment without externalities and imperfect information,

• A)One can end up at any point on the contract curve
• B)One can end up at only one spot on the contract curve
• C)Both indifference curves could move to a higher level of utility
• D)Only one of the indifference curves could move to a higher level of utility

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