Is this efficient allocation

Assignment Help Business Economics

Reference no: EM13859823

In an economy with 16lbs of cheese and 20 bottles of wine Alice and bills utility functions are

Ua=2w+C

Ub=W+2C

Alice has 10lbs of cheese and 12 bottles of wine while bill has 6lbs of cheese and 8 bottles of wine

Is this an efficient allocation? If no find a Preto superior allocation. Indicate the contract curve

Reference no: EM13859823

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