Y10

Question 2 Suppose this society has a limit on the amount of energy it can supply total energy consumption of the two individuals cannot exceed 200 million BTU per year. To maximize the social welfare, what is the optimal allocation of energy consumptions (x_A ^*,X_B^*) between A and B? What is the maximum social welfare W^* under this allocation? Under the optimal allocation of energy consumption, A consumes million BTU per million BTU year, B consumes per year. Maximum social welfare W ^* =