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There are two citizens: A and B. An alternative is defined by z = (.'L'A,IB). Individual preferences are represented by u? (z) = z4, uB

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There are two citizens: A and B. An alternative is defined by z = (.'L'A,IB). Individual preferences are represented by u? (z) = z4, uB (z) = zB. There are only 3 feasible alternatives: z; = (0,0), zo = (2,2), and z3 = (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 2.3 Which alternatives are Pareto efficient? 2.4 Which alternatives maximize social surplus

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