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In a two - good, two - consumer economy, the current allocation is such that Alice has Marginal Utilities for goods x and y ,

In a two-good, two-consumer economy, the current allocation is such that
Alice has Marginal Utilities for goods x and y, respectively, MU A
x =6 and
MU A
y =3. Ben has Marginal Utilities MUB
x =2 and MUB
y =1. Both
consumers have standard preferences. Choose the correct statement.
(a) The allocation is Pareto efficient.
(b) A Pareto improvement upon the original allocation is possible, and
it requires transferring both goods from Ben to Alice.
(c) A Pareto improvement upon the original allocation is possible, and
it requires transferring some x from Alice to Ben, while transferring
some y in the opposite direction.
(d) A Pareto improvement upon the original allocation is possible, and
it requires transferring some x from Ben to Alice, while transferring
some y in the opposite direction.
(e) None of the above.

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