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Unformatted text preview: second distribution to the first, you would be making 9 people better off and 1 person worse off. So both distributions could be considered Pareto optimal, since no change can make someone better off without making someone else worse off. On page 452 of Mankiw, problem #10. On page 452 of Mankiw, problem #11. On page 340 of Mankiw, problem #4. On page 342 of Mankiw, problem #9. On page 342 of Mankiw, problem #13. NOTE: For part a), total revenue should be $2,100 + $800 = $2,900. d. For part a), adults are still charged $7 and children $4, the total revenue remains $2,900, but the profit is now $400. For part b), you would not put on the play because if the price is set at $7, but there is a loss of $400. For part c), everyone is worse off....
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This note was uploaded on 07/09/2008 for the course ECO 100 taught by Professor R.willig during the Spring '08 term at Princeton.
 Spring '08
 R.WILLIG
 Microeconomics

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