The input contract curve represents:
A)All consumption good allocations in an Edgeworth box that are exchange efficient.
B)all input allocations in an Edgeworth box for inputs that are economically efficient.
C)All possible combinations of consumption goods that can be produced in an economy given the economy's available supply of inputs.
D)the different combinations of capital and labor inputs that will produce a given level of output for a particular good.

Question

Quizplus · Accepted Answer

The input contract curve in an Edgeworth box represents all allocations of inputs (like labor and capital) between two firms that are economically efficient, meaning no reallocation can make one firm better off without making the other worse off.

The Input Contract Curve Represents