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Consider the following Edgeworth box: a) True or False: moving from Point A to Point B is a Pareto improvement. b) True or False: moving
Consider the following Edgeworth box:
a) True or False: moving from Point A to Point B is a Pareto improvement.
b) True or False: moving from Point E to Point D is a Pareto improvement.
c) True or False: Point G is Pareto optimal.
d) Which points are Pareto improvements from Point F?
e) Identify any points that are potential final allocations starting at Point F (hint: in this diagram, Point D is not Pareto optimal).
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