Question

Edge worth box in economics

Answer 1

An edge worth box is a concept used in economics to illustrate the potential gains and losses from a decision or policy. It is a matrix that compares the benefits and costs of different choices or actions in a given situation. The edge worth box helps decision-makers to analyze and compare the potential outcomes of a decision and weigh the risks and rewards before making a final choice. It is a tool used to facilitate decision-making and strategic planning in economics and other fields.