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2. You and your sister are dividing a cake. Your sister is always craving for more food: she always prefers more to less. You,
2. You and your sister are dividing a cake. Your sister is always craving for more food: she always prefers more to less. You, on the other hand, prefer more to less up to 3/4 of the cake; beyond that, you can still eat it but will not derive any extra utility. Consider the following divisions: a: your sister has the whole cake and you have none. B: you have the whole cake and your sister has none. y: your sister and you share the cake equally. 8: you have 1/4 of the cake and your sister has 1/2 of the cake. e: you have 4/5 of the cake and your sister has 1/5 of the cake. 2.1. Identify those divisions that are Pareto efficient. Explain your answers. 2.2. Identify those divisions that are weakly Pareto efficient. Explain your answers.
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