Li's marginal rate of substitution of hamburger for steak is 1/4, and Zhang's marginal rate of substitution of hamburger for steak is 2. The allocation of hamburger and steak Pareto-efficient between Li and Zhang because O is not; if Li traded some amount of hamburgers to Zhang for some steak, it is possible that each can be better off O is; Zhang's MRS is exactly 8 times larger than Li's MRS is; no trade can make both Li and Zhang better off O is not; if Li traded some amount of steak to Zhang for some hamburgers, it is possible that each can be better off

Li's marginal rate of substitution of hamburger for steak is 1/4, and Zhang's marginal rate of substitution of hamburger for steak is 2. The allocation of hamburger and steak Pareto-efficient between Li and Zhang because O is not; if Li traded some amount of hamburgers to Zhang for some steak, it is possible that each can be better off O is; Zhang's MRS is exactly 8 times larger than Li's MRS is; no trade can make both Li and Zhang better off O is not; if Li traded some amount of steak to Zhang for some hamburgers, it is possible that each can be better off

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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