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Consider a given allocation of resources that is not Pareto efficient. Not all Pareto efficient allocations in the economy Pareto dominate this allocation. Is this
Consider a given allocation of resources that is not Pareto efficient. Not all Pareto efficient allocations in the economy Pareto dominate this allocation. Is this true or false? Explain.
Answer: This is false. Not all parts of a contract curve can Pareto dominate any given allocation in an Edgeworth box
Isn't any point on the contract curve Pareto dominant over any other point elsewhere on the Edgeworth box? Please elaborate on "Not all parts of a contract curve can Pareto dominate any given allocation in an Edgeworth box"
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