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(1.24 We assume that there are two goods in the world, bread is) and milk {if}, and there are two representative consumers, A and B.A's

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(1.24 We assume that there are two goods in the world, bread is) and milk {if}, and there are two representative consumers, A and B.A's utility function is UA = x and his endowment is ma = (4,4). B's utility function is U3 = xgyg and his endowment is {:33 = (0, O) and we will again let px = Land we will let py vary. Is the original endowment Pareto Optimal? Note: Only one option is correct! Max. score: 2; Neg. score: 0.25 No, the original endowment is not Pareto optimal Yes, the original endowment is Pareto optimal

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