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2. Suppose that Ella has 1 Y and 4 X, which gives her a marginal utility of Y of 20 and marginal utility of X

2. Suppose that Ella has 1 Y and 4 X, which gives her a marginal utility of Y of 20 and marginal utility of X of 5. Joe has 7 Y and 6 X, which gives him a marginal utility of Y of 6 and marginal utility of X of 18. Which statement is TRUE?

A. Ella and Joe would both be better off if Ella traded 1 Y for 1 of Joe's X.

B. Ella and Joe would both be better off if Ella traded 1/2 Y for 1 of Joe's X.

C. A Pareto improvement would be for Ella to give Joe 2 X in exchange for 1 Y.

D. The allocation is Pareto-efficient.

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