Consider Three Ways of Allocating Two Goods in a Two-Person

question 6

Multiple Choice

Consider three ways of allocating two goods in a two-person exchange economy.
I.Both individuals take prices as given and equilibrium prices are established by an impartial auctioneer.
II.One individual can act as a perfect price discriminator and force the other individual to pay a different price for each unit of a good that is traded.
III.One individual is a monopolist and can charge the other individual a single,utility-maximizing price.
Which of these situations is efficient?

• A)None of them.
• B)Only I.
• C)I and II,but not III.
• D)I and III,but not II.
• E)All of them.

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Definitions:

Planning Phase

The initial stage in a project or activity where goals are defined, strategies are developed, and tasks are prioritized.

Prioritize Informational Needs

The process of ranking information based on its importance to meet the specific objectives or requirements of a task.

Statement Purpose

A statement of purpose is a written description of one's intentions or objectives, often used in academic and professional contexts.

Work Timeline

An organized schedule outlining the phases, tasks, and deadlines within a project or period of employment.