DEEPTI

Posted by deepti on Mar 27, 2009; 4:03pm
URL: http://discussion-forum.276.s1.nabble.com/Daily-question-tp2328964p2545057.html

3)a part
 BY CHARGIN 6000RS FOR BIG BED FOOM AND 4000 RS FOR SMALL ROOM ,UTILITY FOR BOTH INDIVIDUALS VL BE SAME.THIS IS PARETO EFFECIENT ALLOCATION AS IF I CHARGE 5000 FOR SMALL ROOM THEN UTILITY OF PRSON HAVING SMALL ROOM IS WORSE OFF AND PERSON HAVING BIG ROOM IS BETTER OFF.SIMILARLY IF I CHARGE 6000 FOR BIG ROOM THEN 1 PRSN IS N=MADE BETTER OFF AND OTHER WORSE OFF.

b part

no there is nosuch allocation.As rent is 10000 and if an individual pay 10000 then he vl get negative utility.