Question
The green point is the endowment, the red curve is an indifference curve for Alice and the blue curves are for Bob. Please state whether
The green point is the endowment, the red curve is an indifference curve for Alice and the blue curves are for Bob. Please state whether each of these item is true, false, or cannot be determined. (a) The endowment is a Pareto efficient on the allocation where Alice gets all the Good1 and Bob gets all the Good2.(b) At the endowment, Alice has a higher marginal utility for Good1 than Bob.(c) The orange point labelled "ef" is in the core.(d) The orange point labelled "ef" is the competitive allocation.(e) If the endowment were shifted to the orange point labelled "gh", the contract curve would be unchanged.(f) If the endowment were shifted to the orange point labelled "gh", the competitive outcome would be unchanged
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