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Unformatted text preview: (b) There are three Pareto efficient allocations in this question. Can you find all of them? 3. Was NAFTA ( N orth A merican F ree T rade A greement, a free trade agreement among Canada, the United States, and Mexico) Pareto improving? If not, why would voters elect governments to pursue it? 4. The current input bundles used by Food manufacturer and Clothing producer are illustrated in the two diagrams. Is the current allocation of labor and capital between two firms productive efficient? If yes, briefly explain why. If no, please show how to make Pareto improvement. L K F=25 MRTS = 2 L K C=5 MRTS = 1/2...
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This note was uploaded on 10/12/2009 for the course ECON 290 taught by Professor J liu during the Fall '06 term at Simon Fraser.
- Fall '06
- J Liu