1) Define Pareto efficiency and Marshallian efficiency. Discuss the benefits of Marshallian efficiency. What is one of the most commonly advanced limitations of Marshallian efficiency?

2) Explain why a Nash equilibrium (don't forget to define it) is not necessarily Pareto efficient. Build an example (you cannot use an example from class or the textbooks and you cannot use the same numbers) illustrating that a Nash equilibrium is not necessarily Pareto efficient.