Re: DSE 2006 q30

Posted by Sumit on Jun 03, 2013; 5:33pm
URL: http://discussion-forum.276.s1.nabble.com/DSE-2006-q30-tp7581726p7581734.html

Hey Maahi,
I think you didn't get what pareto efficient allocations are....just read the definition given by amit sir...in the following link...
http://discussion-forum.2150183.n2.nabble.com/dse-entrance-2012-question-doubt-tp7579873.html...

How could you say a point is pareto optimal If utility of one is decreasing n of one is increasing.(which you did in ur example.)..
A simple method of checking weather a point is pareto optimal or not is to fix one person utility n try to increase other person utility in case of two person....If you able to increase second person utility thats means the point is not pareto optimal....n If you not..which means point is pareto optimal...thats all you need to do in this question too...