₁(x11, X12) = x11×12, W₁ = (10,0); u₂(x21,×₂2) = X21+x22, W₂ = (5,10) Individual 1's consumption in a Pareto efficient allocation with u₁=100: (A) (10,0) (C) (10,10) (B) (15,100/15) (D) (12,25/3)

₁(x11, X12) = x11×12, W₁ = (10,0); u₂(x21,×₂2) = X21+x22, W₂ = (5,10) Individual 1's consumption in a Pareto efficient allocation with u₁=100: (A) (10,0) (C) (10,10) (B) (15,100/15) (D) (12,25/3)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

u₁(x11, X12) = x11×12,

W₁ = (10,0);

u₂(x21,×₂2) = X21+x22,

W₂ = (5,10) Individual 1's consumption in a Pareto efficient allocation with u₁=100:

(A) (10,0)

(B) (15,100/15)

(D) (12,25/3)

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