1Cademy - Consider an economy with two individuals and two goods: 10 apples and 10 bananas. In a particular allocation, one individual receives all 10 apples and the other individual receives all 10 bananas. This allocation is necessarily Pareto inefficient.

True/False

Consider an economy with two individuals and two goods: 10 apples and 10 bananas. In a particular allocation, one individual receives all 10 apples and the other individual receives all 10 bananas. This allocation is necessarily Pareto inefficient.

Updated 2026-07-02

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