DSE 2012 Q27 ( PARETO EFFICIENCY)

[Mauli]

http://economicsentrance.weebly.com/uploads/1/1/0/5/1105777/2012-option-a.pdf

PLEASE HELP ME OUT SOMEONE.
I AM NOT ABLE TO JUDGE WHY WE GET THIS ANSWER. :(

[Mauli]

also if anyone knows how to do q33. please help!

[juhi]

hey mauli just check utility of both the agents for following allocations;

Agent 1         Agent 2
(1.5,0)=1.5       (1.5,3)=11.25
1.5,1.5=3           1.5,1.5=4.5
1.5,3=4.5              1.5,0=2.25
2,1=3                 1,2=5
1,2 =3                2,1=5
2,2=4                    1,1=2
3,0=3                  0,3=9

these are the possible ones..check utility..and you will get the pareto efficient allocations
clearly allocation 1 is pareto efficient and allocation 2 is not