Contract curve

From Free net encyclopedia

A contract curve is the set of all points in an Edgeworth box that achieve Pareto efficiency. A contract curve is the same as a Pareto set.

See welfare economics and list of economics topics.

External links

• http://economics.about.com/library/glossary/bldef-contract-curve.htm

It is the point of tangency between indifference curves. The equation for a contract curve is found by setting MRSa = MRSb.Template:Econ-stub