isi 2012

Posted by ritu on Feb 29, 2012; 6:58am
URL: http://discussion-forum.276.s1.nabble.com/isi-2012-tp7328291.html

1.a library has to be located on the interval [0,1]there are three consumers a,b,c located on the interval at locations 0.3,0.4 and 0.6 respectively.if the library is located  at x,then a,b,c's utilities are given by:   -Ix-0.3I,-Ix-0.4I , -Ix-0.6I respectively.define a Pareto optimal location and examine whether the locations x=.1,.3,.4 are Pareto optimal or not?


2.there are two goods x and y.individual A has an endowment of 25 units of good x and 15 units of good y.individual B has endowments of 15 units of good x and 30 units of good y.the price of good y is re 1 no matter whether the individual buys or sells the good.the price of good x is re1 if the individual wishes to sell it.it is however,rs 3 if he wants to buy it,let Cx & Cy denote consumption of these goods.soppose that individua B chooses to consume 20 units of good x and individual A doesnt buy or sell any of the goods and chooses to consume her own endowment.could A AND B have the same preferences??????