Q.2(a) (i)Define "weakly Pareto efficient" and "strongly Pareto efficient" allocations.(ii) show that an allocation that is 'strongly Pareto efficient' is also 'weaklyPareto efficient. But in general the reverse is not true.(ii) If preferences are continuous and monotonic prove that an allocation is'weakly Pareto efficient' if and only if it is 'strongly Pareto efficient'.

Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Answered: (a) (i)Define "weakly Pareto efficient"…

Business

Economics

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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: 36 42 Quantity of X Quantity demanded of X When the price of X increases from point S to point R…

A: The impact of a price change on the quantity demanded is referred to as the price effect. The two…

Q: City-wide lockdowns were implemented in Sydney by the NSW government in July-August 2021 in response…

A: Anwer - Given in the question- City-wide lockdowns were implemented in Sydney by the NSW government…

Q: Which of the following could be considered a weakness of traditional comparative statics analysis? O…

A: Economics is the social science that studies how individuals, businesses, governments, and societies…

Q: ) Consider a production of a good, X. The market for X is competitive and thus there are many firms…

A: Disclaimer - As you posted multipart questions we are supposed to solve only the first 3questions.…

Q: Suppose the estimated supply function for avocados is given by QS = 48 + 15p – 10pf , where pf is…

A: In economics, an equilibrium point refers to a state of balance or stability in a market or economic…

Q: Pareto efficient

A: Pareto efficient, named after Italian economist Vilfredo Pareto, refers to a state of resource…

Q: There are two person in the cmmunity. Jack who has demand given as Pj=20-0.25qj and Mary demand…

A: The demand curve illustrates the relationship between the price and quantity demanded. The quantity…

Q: Consider an economy with two people who have the utility functions and initial endowments given…

A: Given information: U1=2X11+X12 U2=X21+2X22 Endowment W1=(1/2,1/2)

Q: ToasterOvenslnc. is developing technology to make a toaster oven than uses less electricity. If…

A: An externality occurs when the consequences of an economic transaction are borne by a third party…

Q: The best optimal production of two goods is where the isovalue line is tangent to the labor…

A: The isovalue lines represent the relationships between two commodities that can be produced using…

Q: John's technology for producing apple pie (a) is represented by a = VL+2 where Lis labor. His…

A: Given information Production function a=L^0.5+2 Utility function U=2a-4L^2 Price of Apple=1

Q: Assume all benetits accrue to the buyer and all costs are borne by the seller. Nancy was given 1…

A: Benefits accrue to the buyers. Nancy has 1 ticket to 4 different lakers game.

Q: For an exhaustible resource A. The dynamically efficient allocation is consistent with equalizing…

A: Exhaustible resources are nonrenewable resources that get exhausted after getting extracted…

Q: 4. Consider two markets for the same good: markets 1 and 2. The demand for the good on these markets…

A: Monopoly is a single firm market, where a single firm sells all quantity in the market.Monopolist…

Q: Assume that the demand curve D(p) given below is the market demand for widgets: Q = D(p) = 1067 -…

A: Given: The demand and supply function in the market for widgets is as follows: D(p) = 1067-13p S(p)…

Q: 3. Efficiency in the produ Suppose Germany produces only two goods: wheat and cars. The following…

A: A production possibilities frontier (PPF) depicts the combination of two goods that a nation can…

Q: General Equilibrium 2 The utility for consumer 1 and 2 are: U (x}, a²) = 10[(x})² + (x²)²]!/2 U2(x},…

A: Pareto efficient allocation refers to that which has resources allocated in a way that is the most…

Q: starting pointerre Haute St. Louis Evansville Bloomington demand 8.₁ 5.₁ 3. 150 Indianapolis.. Ft.…

A: Transportation problem can be solved by simplex method and transportation method. A feasible…

Q: When measuring opportunity cost of a project that leads to a negligible price change with a…

A: When a project leads to a negligible price change with a horizontal supply curve, it means that the…

Q: Find the intersection point of the following two constraints: 2X + 2Y = 34 3X + 1Y = 49

A: Point of intersection is that point where two lines or constraints are intersect each other.

Q: A survey of 500 people finds that when the price of a table is $100, the people in the survey will…

A: The demand and price are inversely related to each other. When the price of good increases, it leads…

Q: Define what we mean by Pareto optimality and given an example of a Pareto optimal allocation

A: Pareto optimality:- The situation of Pareto optimality occurs when resources in an economy are…

Q: ndicate whether you think the statement is true or false and explain why. 15. The discounted rate…

A: The rebate rate is the loan fee used to decide the current worth of future incomes in a discounted…

Q: ice and output (P and Q) as a function of exogenous variables in 3). Using comparative statics, find…

A: *Answer:

Q: 2. Consider the problem: minf¡(x, y) = x²+y? minf,(x, y) = y? = x + 5 s;t. -5 < x, y < 5 Solve by…

A: Pareto optimal points are those welfare points deviating from which you cannot make someone better…

Q: An automaker in Kazakhstan uses steel and aluminum in its exports. Steel costs $1 per pound, and…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: 1. Suppose that there are 1200 units of a nonrenewable resource available over two periods (0 and…

A: Non renewable resources cannot be replenished once used. As a result, the use of non renewable…

Q: f D(p) = 10400 - 40p and S(p) = 400 + 60p are demand and supply functions, respectively, find the…

A: The equilibrium is the point where supply of products equals the demand. When a major index has a…

Q: If the MPx/Px is less than the MPY/Py, the firm should use more of O Both X & Y inputs O Input X O…

A: Marginal product refers to additional product that occurs by employing one more unit of input.

Q: 6. Consider an Edgeworth box economy where preferences are given by (a) Suppose the initial…

A: A Pareto optimal allocation is the one in which the most efficient allocation of resources is done…

Q: Local government in Victoria has responsibility for garbage collection from households and business…

A: Given information Garbage collection and dispose off creates some negative externality in an…

Q: 1. As an agriculture analyst for the Union of American Fruit Producers (UAFP), you are in charge of…

A: Demand is amount of a good that consumers are willing and able to purchase at different…

Q: Derive a co A A 5. Consider a two-consumer economy in which wA = (1,2), wB=(2, 2), u^(x₁, x2) =…

A: an Edgeworth box also known as an Edgeworth-Bowley box refers to the graphical representation of a…

Q: Find the best location for a warehouse to supply the following markets? a) Assuming the rectilinear…

A: Answer a) Assuming rectilinear metrics, the best location for the warehouse is given by the mean of…

Q: discount on all products. Using ‘Comparative Statics Analysis’ of demand and supply model: a.…

A: Comparative Statics is determining of the changes in the variables being endogenous of a model which…

Q: Suppose there are three (3) people in a market for bottles of perfume; Mutumbu, Jasanu and Julius…

A: Market demand refers to the total quantity of a good or service that consumers in a specific market…

Q: In a fictitious town of Fruitlandia, 4 individuals each buy apricots following their individual…

A: Individual demand is the demand of one person. Market demand is the demand of all person in the…

Q: First Welfare Theorem says that the competitive equilibrium allocation is Pareto Efficient under a…

A: A discipline of economics known as welfare economics uses methodologies from the study of…

Q: Say you were interested in maximizing U = U(x,y) with the usual budget constraint, M = Px*x+Py*Y.…

A: Given, Utility function : U=U(x, y)Budget Constraint : M=Px*x+Py*y

Q: Fill in the blanks 86. Market equilibrium is considered efficient because the sum of maximized. and…

A: Producer surplus is the difference between the price a consumer is willing to pay and the…

Q: [10] Suppose a retail seller of jeans currently has 40 customers. The retailer offers the following…

A: Answer: (10). 40 consumers will buy 1st pair at the price of $100 each. 30 consumers will buy 2nd…

Q: Is rank efficient allocation must always be pareto efficient? Explain

A: Pareto efficiency is a concept in economics and game theory that refers to an allocation of…

Q: Kids in the city were willing and able to buy 12 rolls of cotton candy when the price was $1.00 each…

A: The demand curve shows the various combinations of Pd and Qd of a good. The supply curve shows the…

Question

100%

Q.2
(a) (i)Define "weakly Pareto efficient" and "strongly Pareto efficient" allocations.
(ii) show that an allocation that is 'strongly Pareto efficient' is also 'weakly
Pareto efficient. But in general the reverse is not true.
(ii) If preferences are continuous and monotonic prove that an allocation is
'weakly Pareto efficient' if and only if it is 'strongly Pareto efficient'.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

3. Suppose' u¹(x¹) − − (2 − ¹;)² – (2 − ¹;)² for each agent i, and w} = w = 2 and w} = w} = 0. (a) Argue that no allocation z with r¦ ‡ r, can be Pareto optimal. (b) Argue that any allocation z with r = ris Pareto optimal. r (c) What are all of the competitive equilibria?
u₁(x11, X12) = x11×12, W₁ = (10,0); u₂(x21,×₂2) = X21+x22, W₂ = (5,10) Individual 1's consumption in a Pareto efficient allocation with u₁=100: (A) (10,0) (C) (10,10) (B) (15,100/15) (D) (12,25/3)
A business owns two factories: q=sqrt(KL) for both factories r=w=1 In short run, K1=25 K2=100 Question: 1) In order to minimize production cost, how should the business allocate production between the two factories? You must explain clearly. ( For example if you believe the short run marginal cost should equal, explain why). 2) Under perfect allocation, derive SRTC, SRMC, SRAC. 3) How should the business allocate production in long run? Derive LRTC, LRMC, LRAC (Hint: Lagrangian menthod) 4) If both factories exhibits decreasing returns to scale, explain why the optimal allocation in long run is letting the MC of last unit produced equal.
12
What does it mean when the initial allocation is interim Pareto Efficient
5
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.