Question

what is locus of efficiency?​

Answer 1

Answer:

If the initial allocations of the two goods are at a point not on this locus, then the two people can trade to a point on the efficient locus within the lens formed by the indifference curves that they were originally on. The set of all these efficient points that could be traded to is the contract curve.

Explanation:

Answer 2

Answer:

locus of efficiency

Factor Proportions and Factor Prices along Efficiency Locus: The ratio of the two factor prices at each point is given by the slope of the single straight line that is tangent to both isoquants at that point (single, because they are tangent to each other). soobee72pl and 1 more users found this answer helpful