In an analysis involving an Edgeworth box, the contract curve contains
A) all potential trading points for the two players.
B) the endowment point.
C) all efficient allocations for the two players.
D) both b) and c) are correct.

Question

Quizplus · Accepted Answer

The contract curve in an Edgeworth box represents all efficient allocations where no further mutually beneficial trades can be made, meaning it contains all Pareto efficient allocations for the two players.

In an Analysis Involving an Edgeworth Box, the Contract Curve