The size of the Edgeworth box for consumption is determined by:
A)the productivity of the economy.
B)the presence of externalities in consumption.
C)the available quantities of the two goods.
D)the sum of the MRS of the two indifference curves.

Question

Quizplus · Accepted Answer

The size of the Edgeworth box for consumption is determined by the available quantities of the two goods, as it represents the limits of the economy's production possibilities. The other options listed do not determine the size of the Edgeworth box for consumption.

The Size of the Edgeworth Box for Consumption Is Determined