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Anne and Ben consume only apples and bananSuppose that individual A's utility function is UA=4T+C and that individual B's utility function is UB=2T+C, where T
Anne and Ben consume only apples and bananSuppose that individual A's utility function is UA=4T+C and that individual B's utility function is UB=2T+C, where T is pounds of tea and C is pounds of coffee. In the Edgeworth Box with tea in the horizontal axis and coffee in the vertical axis, individual A in the bottom left-hand corner and individual B in the top right-hand corner, Pareto efficient allocations are located on (a) the top horizontal edge and the right vertical edges. (b) the top horizontal edge and the left vertical edges. (c) the bottom horizontal and the right vertical edges. (d) the bottom horizontal and the left vertical edges.as. They trade with each other and there is no production. They both have convex preferences. Anne's original endowment of apples and bananas is the same as Ben's. (a) At the original endowment their marginal rates of substitution must be the same. (b) In a competitive equilibrium, they must consume identical consumption bundles. (c) None of the options. (d) If they have identical utility functions, then the initial allocation is Pareto efficien
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