Question:

1. How should we interpret a situation in which aggregate MNB of figure 2.10 DOES NOT intersect w = W or, equivalently, the curves of figure 2.11 DO NOT intersect at a positive price?

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the applicable MNB function. 5. How should we interpret a situation in which aggregate MNB of figure 2.10 does not intersect w=w or, equivalently, the curves of figure 2.11 do not intersect at a positive price? T 1:adinas 1. 21c 111 e 15 MNB 12: MNB2 MNB, + MNB2 9 6 3 1.88 21,944 28,056 w 50,000 Figure 2.10 Efficient allocation for two agents MNB MNB2 12 12F 9 9F 16 6 3 1.88 3 1.88 0 10,000 20,000 40,000 28,056 W Figure 2.11 Two-agent efficiency with three axes the applicable MNB function. 5. How should we interpret a situation in which aggregate MNB of figure 2.10 does not intersect w=w or, equivalently, the curves of figure 2.11 do not intersect at a positive price? T 1:adinas 1. 21c 111 e 15 MNB 12: MNB2 MNB, + MNB2 9 6 3 1.88 21,944 28,056 w 50,000 Figure 2.10 Efficient allocation for two agents MNB MNB2 12 12F 9 9F 16 6 3 1.88 3 1.88 0 10,000 20,000 40,000 28,056 W Figure 2.11 Two-agent efficiency with three axes