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Math Help - Pareto Optimal Allocation

  1. #1
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    Pareto Optimal Allocation

    An economy consist of 2 people.
    Person 1 has endowment of (3,12)
    Person 2 has endowment of (6,6)
    They have the same Utility function: U(x,y)=XY
    At every Pareto Optimal Allocation,
    (is a multiple choice and answer is : "Person 1 consumes 9 good x for every 18 good y that he/she consumes")

    I couldnt seem to get close to the answer.

    At Pareto Optimal, their MRS(1)=MRS(2)=P(1)/P(2){"Price 1 and 2"}, and then i dont know how to continue to get the answer

    Any help will be appreciated
    Edit: this is question is based on Competitive/Walrasian Equalibirum

    Thanks in advance
    Last edited by firebio; March 23rd 2010 at 06:55 PM. Reason: Edit: this is question is based on Competitive/Walrasian Equalibrium
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