In an Edgeworth Box, Apples Are Measured Along the Horizontal

question 40

Multiple Choice

In an Edgeworth box, apples are measured along the horizontal axes, and oranges are measured along the vertical axes. Player 1 is in the lower left-hand corner; player 2 is in the upper right-hand corner. Player 1 likes apples but gets no utility from the consumption of oranges. Player 2 likes oranges but gets no utility from the consumption of apples. In the initial endowment, Player 1 has 5 apples and 4 oranges. Player 2 also has 5 apples and 4 oranges. What is the contract curve?

• A)All points along the horizontal axis.
• B)All points along the vertical axis.
• C)All points to the right and below the initial endowment point.
• D)The point where Player 1 has 10 apples and 0 oranges, and Player 2 has 8 oranges and 0 apples.

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Definitions:

Bank Robberies

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