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Can you please answer question 2.1 and 2.2? Thank you so much. 2 A society is composed of 3 individuals named 1, 50, and 100.
Can you please answer question 2.1 and 2.2? Thank you so much.
2 A society is composed of 3 individuals named 1, 50, and 100. There are three alternatives: 2, 60, and 90. For each individual i E {1, 50, 100}, her utility from alternative A c {2, 60,90} is given by u' (A) = - 12-Al where (x| is the absolute value of r. 2.1 How does each individual rank the three alternatives? 2.2 Which alternatives are Pareto efficient? Pareto Efficiency Definition: An allocation is pareto efficient if it is impossible to make one person better without making another person worse In a simple example with two individuals, an allocation (or alternative) A is Pareto efficient if there is no B such that U1 (B) 2 U1 ( A ) U2 (B) > U2 ( A ) and at least one inequality is strict (>)Step by Step Solution
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