; Micro Economics - Pareto efficiency given initial endowment
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# Micro Economics - Pareto efficiency given initial endowment

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I t explains, with the given level of initial endowmwent, how to achieve pareto efficiency of two persons and two goods economy

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[MICRO ECONOMICS - PARETO
CLASSOF1
EFFICIENCY GIVEN INITIAL ENDOWMENT]

Document Description:
It explains, with the given level of initial endowmwent, how to achieve pareto
efficiency of two persons and two goods economy.
Sub: Economics

Question:
Consider the following two person- two good pure exchange economy: Alfred’s utility function
is UA(X, Y) = min {X, Y} and Bob’s utility function is UB(X, Y) = max{X, Y}.

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a) Suppose that Alfred’s initial endowment is ωA = (2, 8) and Bob’s initial endowment is ωB
= (8, 2). If there is any, given an example to an allocation which is feasible but NOT
Pareto
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