2 Pareto efficiency and social surplus There are two citizens: A and B. An alternative is defined by r = (24,!). Individual preferences are represented by uf (x) = 24, u (x) =. There are only 3 feasible alternatives: r1 = (0,0), x2 = (2,2), and r3 = (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 B u (x) = 1 + 2