【正文】
pples per year Fig leaves per year Ag Eg g p1 p Ep2 Ap2 p2 ? Pareto efficient ? Pareto improvement 38 Starting from a different initial point Adam Eve 0 0’ s r Apples per year Fig leaves per year Ag Eg g p1 p Ep2 Ap2 p2 p3 p4 k 39 The Contract Curve Adam Eve 0 0’ s r Apples per year Fig leaves per year Ag Eg g p1 p Ep2 Ap2 p2 p3 p4 The contract curve 310 Pareto Efficiency in Consumption MRSaf = MRSaf Adam Eve 311 Production Possibilities Curve Apples per year Fig leaves per year C C 0 w y x z │Slope│ = marginal rate of transformation 312 Marginal Rate of Transformation ? MRTaf = Marginal rate of transformation of apples for fig leaves ? MRTaf = MCa/MCf 313 Efficiency Conditions with Variable Production ? MRTaf = MRSaf = MRSaf ? MCa/MCf = MRSaf = MRSaf