Suppose there are 4 alternatives x,y,z and w. Further suppose
that there are 7 individuals 1,2,3,4,5,6 and 7. The individuals
rankings(orderings) of the four alternatives Ri, i=1,.....7 are
given by
R1:(xy)zw
R2:yzwx
R3:zw(xy)
R4:(xy)(zw)
R5:yzwx
R6:zw(xy)
R7:(xy)(zw)
Determine which of the alternatives are pareto Optimal. Expalin
your answer. ( alternative in parenthesis are indifferent )
y and z are pareto efficient while w and x are not
this is because whenever you move away from y or z then atleast one person will be worse off and some1 else better off... while this is not the case with x and w...
just apply the deifinition of pareto efficiency.. :)
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