2 Pareto efficiency and social surplus There are two citizens: A and B. An alternative is defined by x = (x4, xB). Individual preferences are represented by uf (x) = x4, ub (x) = xB. There are only 3 feasible alternatives: x1 = (0, 0), x2 = (2,2), and X3 = (1, 10). 2.1 Which alternatives are Pareto efficient? 2.2 Which alternatives maximize social surplus? Now suppose that A is altruistic and has preferences represented by x B uA (a) = 24 + 2