Friends pLzzz help solve this question ASAP

[reetika05]

Q. 30 There are two individuals A and B. The utility function of both are identical and given by u(x,y)= max(x,y). Each of them has 1 unit of x and 1 unit of y. Which of the following is a pareto optimal allocation?

a. A has x=1, y=1 and B has x=1, y=1
b. A has x=2, y=0 and B has x=0, y=2
c. A has x=0, y=0 and B has x=2, y=2
d. A has x=3/2, y=1/2 and B has x=1/2, y=3/2
 

[nidhi]

the ans is b

[reetika05]

can u plz explain??

[nidhi]

pareto optimal bundle are those whr u cnt mke sum1 better off widot making others worse off....since thiis is a max functn,max no of x or y will be selected....in other options whr there is x=y,if we transfer one x from a to b it wont mke ny differnce to A since minimum no does not matter here whereas B could be made better off....so they r nt pareto optimal pts

in bundle(0,2) nd (2,0),if we transfer ny of good x or y from A to B or from B to A it would make one person better off and other person worse off

so itz a pareto optimal pt

hope m able to xplain u