Consider an exchange economy with two agents, 1 and 2, and two goods, X and Y. There are 6 units of X and 4 units of Y a

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Consider An Exchange Economy With Two Agents 1 And 2 And Two Goods X And Y There Are 6 Units Of X And 4 Units Of Y A 1 (16.36 KiB) Viewed 28 times

Consider an exchange economy with two agents, 1 and 2, and two goods, X and Y. There are 6 units of X and 4 units of Y available. An allocation is denoted by (x₁, y₁), (x2, Y2), where (x₁, y₁) is agent 1's consumption bundle, (x2, y₂) is agent 2's consumption bundle, x₁ + x₂=6 and y₁ + y2 = 4. Agent 1 has the utility function u = min(x₁.y₁) and agent 2 has the utility function u₂(x, y₂) = min(x2, Y₂). Which of the following allocations is not Pareto efficient? (A) (2,2), (4,2) (B) (3,2), (3,2) (C) (1,2), (5,2) (D) (3,1), (3,3)