In a Pure Exchange Economy, If an Allocation Is Pareto

question 21

True/False

In a pure exchange economy, if an allocation is Pareto efficient, it is impossible to have two people who prefer each other's consumption bundles to their own.

---

Definitions:

Partnership Share

The portion of ownership interest that a partner has in a partnership, often determining the share of profits and losses and the extent of liability.

Liquidated

The process of converting assets into cash or liquid assets, often in the context of dissolving a company or settling debts.

Existing Partnership

An ongoing business relationship between two or more persons who cooperate to conduct business activities for profit.

Jointly

In cooperation or shared between two or more parties.