Question: Suppose trade between two individuals involves coercion, such that the gain to one offsets the loss to the other. Which of the following will be
Suppose trade between two individuals involves coercion, such that the gain to one offsets the loss to the other. Which of the following will be true?
Utility declines for both individuals.
Productive efficiency goes up
Utility increases for both individuals.
It is a zerosum game.
Posttrade consumption will decline for both individuals.
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