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An isolated island has two goods, mangoes (M) and yams (Y), and two agents, Arlo and Biff. Arlo has ordinary, typical well-behaved preferences. [What do
An isolated island has two goods, mangoes (M) and yams (Y), and two agents, Arlo and Biff. Arlo has ordinary, typical well-behaved preferences. [What do we mean by "well-behaved"?] Biff will not eat yams and he can throw them away at no cost if he wants to. There are 10 mangoes and 10 yams available each day. The island society/economy begins each day with perfect equality. Use an Edgeworth box to illustrate and discuss the potential(s) for feasible exchange. Contrast the extreme cases of possible outcomes
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