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BrendanOO7 BrendanOO7
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6 years ago
Mr. X values a good at $100 and buys it from Mr. Y at $80 (who produces it at a cost of $70).  Mr. Z then offers Mr. X the same good at $60.  Mr. X buys the good from Mr. Z, and stops buying it from Mr. Y.  Which of the following makes this event Pareto optimal?
A) Mr. X gives Mr. Y $11.
B) Mr. X gives Mr. Y $30
C) Mr. X pays Mr. Z $80.
D) Mr. X and Mr. Z join to give Mr. Y $70.
Textbook 
Modern Labor Economics: Theory and Public Policy

Modern Labor Economics: Theory and Public Policy


Edition: 12th
Authors:
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alanialani
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3 years ago
thank you
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