Microeconomics (9th Edition) (Pearson Series in Economics)
9th Edition
ISBN: 9780134184241
Author: Robert Pindyck, Daniel Rubinfeld
Publisher: PEARSON
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Question
Chapter 16, Problem 6RQ
To determine
The Edgeworth box diagram.
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On the Edgeworth production box plot, what conditions must be met for an allocation to be on the production contract curve? Why is there a competitive equilibrium on the contract curve?
What does the contract curve in an Edgeworth production box signify? Why do competitive markets generate equilibriums that lie on the contract curve?
In what sense is a competitive equilibrium a good or bad thing for a given economy?
Chapter 16 Solutions
Microeconomics (9th Edition) (Pearson Series in Economics)
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