DSE 2013 Q.38

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DSE 2013 Q.38

marth
Suppose that a city can be described by an interval [0, 1].
Only two citizens, A and B, live in this city at different locations; A at 0.2
and B at 0.7. Government has decided to set up a nuclear power plant in
this city but is yet to choose its location. Each citizen wants the plant as
far as possible from her home and hence both of them have the same utility
function, u(d) = d, where d denotes the distance between the plant and home.

Apart from  extreme position ..ven we take plant to new position take (0,0.2) and  then (.7,1) it i am not able to decide Pareto eff. How it make worst or better of f at these position .or i am still missing something
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Re: DSE 2013 Q.38

Sris
0,0.2) and( 0.7,1) are pareto inefficient when we compare it with 0 and 1 respectively...
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Re: DSE 2013 Q.38

marth
thanking you