Assume there are only two individuals in an economy, Lisa and Bart. The utility possibilities frontier for these individuals is given as:
120 = UL + UB
where UL is Lisa's utility and UB is Bart's utility. Lisa's current level of utility is 20, Bart's level of utility is 90. This combination is:
A) inefficient.
B) economically efficient.
C) impossible, because it is outside of the welfare frontier.
D) none of the above
A
Economics
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