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Unformatted text preview: S D x p S D x p S D x p S D x p A B C D Both Mother Theresa and Uncle Scrooge have a utility function equal to their income, but Mother Teresa does not gain additional utility from income greater than $100 while Uncle Scrooge has utility from income only if it is greater than $100,000. Which of the following allocations are Pareto Optimal? A.Mother Theresa has $1 and Uncle Scrooge has $1. B. Mother Theresa has $100,000 and Uncle Scrooge has $100,000. C. Mother Theresa has $1 and Uncle Scrooge has $100,001. D.Mother Theresa has $100,099 and Uncle Scrooge has $0. E. Both C & D...
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This note was uploaded on 09/11/2011 for the course ECON 100A taught by Professor Woroch during the Spring '08 term at Berkeley.
 Spring '08
 Woroch

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