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Title: Can it be efficient for one trader to consume all units of the goods while the other trader consumes ... Post by: PaulKet on Nov 12, 2017 Can it be efficient for one trader to consume all units of the goods while the other trader consumes nothing? In other words, does this point lie on the contract curve?
Title: Re: Can it be efficient for one trader to consume all units of the goods while the other trader ... Post by: desperado2 on Nov 12, 2017 Yes, it is a Pareto Optimal point (though perhaps socially undesirable for obvious reasons). In order to improve the utility of one consumer, we must reduce the consumption of the other, thereby making that other consumer worse off.
Title: Re: Can it be efficient for one trader to consume all units of the goods while the other trader consumes ... Post by: PaulKet on Aug 13, 2018 :D Yay, got perfect on my quiz
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