Re: Doubt

Posted by mrittik on Jun 12, 2014; 7:01am
URL: http://discussion-forum.276.s1.nabble.com/Doubt-tp7592448p7592453.html

A person should stay at her initial endowment atleast....so her initial endowment is a stable one which is comp eqm itself....comp eqm is a sufficient condn for pareto optimality.....ans d is thats why right option...becoz person 1's initial utility level was 100...only opt b & d bolsters this utility level...but in b person 2's utility level is decreased which is not pareto optimal...