If the two individuals' indifference curves through their endowment bundles are tangent to one another at the endowment bundle (in the Edgeworth Box), then the endowment bundle is a competitive equilibrium allocation.
Answer the following statement true (T) or false (F)
True
Rationale: In this case, we can draw a budget line through the endowment bundle such that both individuals optimize at the endowment bundle along that budget line. The slope of that line then incorporates competitive equilibrium prices that support the endowment allocation as a competitive equilibrium allocation.
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Suppose the equilibrium price and quantity of ketchup fall. The most likely explanation for these changes is:
A. an increase in the supply of ketchup. B. a decrease in the demand for ketchup. C. an increase in the demand for ketchup. D. a decrease in the supply of ketchup.
Strictly speaking, corporations do not pay taxes
a. True b. False
A monopoly faced with the possibility that another firm may enter is a(n):
A. natural monopoly. B. competitive monopoly. C. insecure monopoly. D. oligopolistic monopoly.
The SUM of data points is a measure of fit for those data points.
Answer the following statement true (T) or false (F)