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Hi,
Please Help me to solve this problem.
A researcher has 100 hours of work which have to be allocated between two research assistants, Aditya and Gaurav. If Aditya is allocated x hours of work, his utility is −(x − 20)2. If Gaurav is allocated x hours of work, his utility is −(x−30)2. The researcher is considering two proposals: [I] Aditya works for 60 hours and Gaurav works for 40 hours. [II] Aditya works for 90 hours and Gaurav works for 10 hours.
Which of the following statements is correct.
(a) Proposal I is Pareto efficient but Proposal II is not.
(b) Proposal II is Pareto efficient but Proposal I is not.
(c) Both proposals are Pareto efficient.
(d) Neither proposal is Pareto efficient.
How do you getting this Aditya 60 hours and Gaurav 40 hours ??
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