pareto efficiency

[Xiang]

Can anybody please put some questions on pareto efficiency?

Thanks

[duck]

Please find attached some problems on Pareto Efficiency.
PE.pdf

[Xiang]

Thank you :D

What's the solution?

[duck]

Do them yourself.. :)

[Xiang]

Is it option b?

[Ayushya Kaul]

It's (b).
other's are ruled out since the MRS is not same anywhere for the two individuals.

[Sumit]

guys a,b,c,d,e are not the options you need to find pareto optimal solutions for each situations....

[laracroft]

Set of pareto optimal solutions:
(a) A's y axis and B's x axis
(b) contract curve (intersecting all pints where MRSa = MRSb)
(c) contract curve where x=y
(d) for B where x=y and for A *total x - x for B*
(e) contract curve where x=y

I am not sure... kindly acknowledge and correct me... someone !

[duck]

Hi Laracroft.. :)

(d) part is not Correct.. Rest all are correct.. :)

[Sumit]

@Duck: I think correct answer for d) is Xa=0, Xb=Yb=10...Am I correct???

[duck]

Hi Sumit.. :)

Hint: Plot edgeworth box diagram and then IC of both individuals and check!

[Sumit]

I was actually doing like you said .....n I'm getting the only point where IC of A's is tangent to B's i.e A's origin..
In other word B will consume on all the points where Xb=Yb n A will consume Xa=C where C belongs in interval [0,10]...So, the only point we hv is A's origin in edgeworth box..

[Sumit]

@Duck: plz answer this two question as well with explanation...
http://discussion-forum.2150183.n2.nabble.com/JNU-Questions-tp7580796p7580850.html.

[duck]

Please find attached solution of (d)
PE_(d).png

[Sumit]

@Duck: thanks... what a stupid mistake I was doing here.....n plz solve the question posted by me as well....

[laracroft]

Hey Duck ... Thanks a lot for the solution :) !!