Why in the simple model of exchange every allocation which is Pareto optimal and accepted by traders

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Why in the simple model of exchange every allocation which is Pareto optimal and accepted by traders is feasible with regard to an initial allocation? Use the Edgeworth box to explain this.

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Microeconomics Static And Dynamic Analysis Springer Texts In Business And Economics

ISBN: 9783031105531

1st Edition

Authors: Krzysztof Malaga, Karolina Sobczak

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Question Posted: Jan 31, 2024 02:00 AM

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Why in the simple model of exchange every allocation which is Pareto optimal and accepted by traders

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In the simple model of exchange an allocation is considered Pareto optimal if there is no possibilit...View the full answer

Microeconomics Static And Dynamic Analysis Springer Texts In Business And Economics

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