ISI 2011 doubt

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ISI 2011 doubt

shiva



Can any of you please explain on how to solve this question
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Re: ISI 2011 doubt

Asd1995
Pareto optimality condition:

MRS(i,j) where i,j are different goods for each consumer are the same. (You should check that the utility function is concave first though)

Hence Ci/Cj for each person is equal and equals wi/wj

Clearly the given allocation satisfies the above criteria.