Everyone has the same marginal rate of substitution

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For each of the following, identify whether the statement is true, false or uncertain and justify your answer. a) If everyone has the same marginal rate of substitution, then the allocation is Pareto efficient. b) If a policy change increases social welfare, then it must be a Pareto improvement. c) In a two-person economy, it is not Pareto efficient to give all the goods to one person.

Reference no: EM13887094

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