Ch5-Pareto Efficiency, Bargaining, and Legislation

[@sarithramlakan5126]

could you explain what would happen if bruno has a take it or leave it option and the same if angela had a take it or leave it option for this scenario?

[@shekhertz]

is the line between Biological constraint and feasible frontier also pareto efficient curve?

[@liammalloy]

The Pareto Efficiency curve is the line between the two points which would be chosen when each person has all the bargaining power. We know that when Bruno is not in the picture, Angela chooses point C. That's her best possible outcome. When Bruno can tell Angela exactly how much to work, he chooses point D. So yes, in this situation, CD is the Pareto efficiency curve. Once Angela has a better option, the Pareto efficiency curve shortens from her new better option (above D) to C.