In the diagram below, if legislation allows Angela to be at point F, if Angela and Bruno can bargain costlessly:
Select TWO correct answers.

Question

In the diagram below, if legislation allows Angela to be at point F, if Angela and Bruno can bargain costlessly:  Select TWO correct answers.

Answer

The final outcome could be at point I, which is a Pareto improvement.

Answer

Point F is on Angela's indifference curve so it is also Pareto efficient from her point of view.

Answer

Movements along the contract curve between C and D can still bring Pareto improvements for either Angela or Bruno.

Answer

The final outcome could be at point H, which is a Pareto improvement.

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