(a) (i)Define "weakly Pareto efficient" and "strongly Pareto efficient" allocations.

Using your knowledge from Topics 1-7, which of the following statements about Pareto optimal outcomes is false? Every outcome which is Pareto optimal must be a Pareto improvement over all other outcomes. An outcome which maximises total surplus is always Pareto optimal. Pareto optimal outcomes can be ordered in terms of total surplus. An equilibrium in a competitive market is an outcome which is Pareto optimal. O None of the above. No answer.

Does the minimum efficient scale necessarily have to be where the marginal cost is minimal? Can taxes be Pareto improving? How?

A gardener is trying to maximize profit by growing tomatoes (T) and carrots(C) with fertilizer(F). The production functions are: Tomatoes: T = 70F₁ - 1.5F-² Carrots: C = 90Fc - 2Fc² Constraint: FT + Fc = 60 The profit is $0.50 per tomato and $0.25 per carrot. There are 60 units of fertilizer available. How much fertilizer should go to the tomatoes?

4. General Equilibrium 1) : Consider, U1 (21, y1) = 5(x141) U2(r2, Y2) = Inx, + 5lny, W = (6,4) and W2 = (3,6) a. Characterize the Pareto efficient allocations and contract curve b. Which allocations are in the core c. Find the Competitive/Walrasian equiiîbrium for this problem d. Is the answer of c in the core

Resource X is necessary in the production of good Y. If the price of resource X decreases A the supply curve of Y shifts leftward. В the supply curve of Y shifts rightward. (c) the supply curve of Y is unaffected. C there is a movement down along the D supply curve of Y. there is a movement up along the supply E curve of Y.