An economy, consisting of m individuals, is endowed with quantities
W1 ,W2 ,...Wn of n goods. The ith individual has a utility function
Ui(C1 ,C2 ,...Cn ) =C1* C2* ...*Cn , where iCj is consumption of good j of
individual i.
(a) Define an allocation, a Pareto inferior allocation and a Pareto
optimal allocation for this economy.
(b) Find an allocation which is Pareto inferior and an allocation which
is Pareto optimal.
Locked
