Assertion (A): Compared to a certain point on the contract curve, a point above the contract curve is efficient.
Reason (R): The contract curve represents the locus of points where the marginal rate of substitution between two goods is the same for both the individuals.
1
Both A and R are correct, R is the correct explanation of A
2
Both A and R are correct, R is not the correct explanation of A
3
A is correct but R is not correct
4
A is not correct but R is correct