EBK INTERMEDIATE MICROECONOMICS AND ITS
12th Edition
ISBN: 9781305176386
Author: Snyder
Publisher: YUZU
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Question
Chapter 10, Problem 10.7P
a)
To determine
To calculate: Utility of each sailor.
b)
To determine
To calculate: Food allocation which would yield same utility to both sails.
c)
To determine
Allocation at which the sum of utilities is maximum, but the 2nd sailor receives at least a utility of 5.
d)
To determine
To discuss: Other criteria for allocation.
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Come up with an example with four agents and four items in which there is only one Pareto efficient allocation
23. Anita (A), Ben (B) and Carlos (C) are housemates who have moved to a new house and
must decide how to allocate rooms X, Y and Z.
An 'allocation' is where each housemate is assigned to exactly one room. For example,
Anita → Room Z, Ben → Room X and Carlos → Room Y is allocation (Z, X, Y).
Utilities for each room are given below:
Room X
7
9
2
Room Y
4
3
7
Room Z
2
1
4
Utility for A
Utility for B
Utility for C
(a) How many possible allocations are there in total?
(b) Identify the two allocations which are not Pareto optimal and explain why they are
not Pareto optimal. (Hint: is the allocation (Y,Z) Pareto timal?)
(c) Suppose we square Carlos' utility from each room (i.e. uc (Z) becomes 16). Would
the set of Pareto optimal outcomes change? Why/why not?
(d) Returning to the utilities from part (a), which of the Pareto optimal allocations
maximise total surplus (utility) and would all housemates weakly prefer this
allocation over any other?
(e) Suppose the housemates decide to allocate…
Suppose there are two consumers, A and B. There are two goods, X and Y.
There is a TOTAL of 8 units of X and a TOTAL of 8 units of Y. The
consumers' utility functions are given by:
UA(X,Y) = 2X + Y
UB(X,Y) = X*Y2
Which of the following allocations is Pareto Efficient?
None of the other answers are Pareto Efficient.
Consumer A gets 3 units of X and 8 units of Y, and Consumer B gets 5 units of X
and O units of Y.
Consumer A gets 4 units of X and 4 units of Y, and Consumer B gets 4 units of X
and 4 units of Y.
Consumer A gets 1 units of X and 4 units of Y, and Consumer B gets 7 units of X
and 4 units of Y.
Consumer A gets 8 units of X and 8 units of Y, and Consumer B gets 0 units of X
and O units of Y.
Chapter 10 Solutions
EBK INTERMEDIATE MICROECONOMICS AND ITS
Ch. 10.2 - Prob. 1MQCh. 10.4 - Prob. 1MQCh. 10.4 - Prob. 2MQCh. 10.4 - Prob. 1.1MQCh. 10.5 - Prob. 1TTACh. 10.5 - Prob. 2TTACh. 10.7 - Prob. 1MQCh. 10.7 - Prob. 2MQCh. 10.7 - Prob. 3MQCh. 10.8 - Prob. 1TTA
Ch. 10.8 - Prob. 2TTACh. 10.8 - Prob. 1MQCh. 10.8 - Prob. 2MQCh. 10 - Prob. 1RQCh. 10 - Prob. 2RQCh. 10 - Prob. 3RQCh. 10 - Prob. 4RQCh. 10 - Prob. 5RQCh. 10 - Prob. 6RQCh. 10 - Prob. 7RQCh. 10 - Prob. 8RQCh. 10 - Prob. 9RQCh. 10 - Prob. 10RQCh. 10 - Prob. 10.1PCh. 10 - Prob. 10.2PCh. 10 - Prob. 10.3PCh. 10 - Prob. 10.4PCh. 10 - Prob. 10.5PCh. 10 - Prob. 10.6PCh. 10 - Prob. 10.7PCh. 10 - Prob. 10.8PCh. 10 - Prob. 10.9PCh. 10 - Prob. 10.10P
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