Re: DSE 2010 Disucssion-Please joim

Posted by Granpa Simpson on Jun 05, 2014; 8:04am
URL: http://discussion-forum.276.s1.nabble.com/DSE-2010-Disucssion-Please-joim-tp7590469p7591526.html

Q56) the answer will be c this is because it is the only bundle allocation in which transfer can be made in a way such that the utility of A is unchanged while that of B increases..consider the allocation (0.5,1) for A and (3,1) for B in this case A's utility remains same as the initial level i.e. 0.5, however B's utility increases to 1 from 0.5...in other option you can make such an allocation..so c is not Pareto efficient.