Allocation I: x 1 = 50, y 1 = 60, x 2 = 75, y 2 = 60 20. What is the value of MRS 1 ? 21. What is the value of MRS 2 ? 22. Is I pareto efficient (EF)…

Allocation I: x1 = 50, y1= 60, x2 = 75, y2 = 60

20. What is the value of MRS1?

21. What is the value of MRS2?

22. Is I pareto efficient (EF) or Pareto inefficient (IN)? State in your work the equality or inequality that proves your claim.

23. What is the value of 1’s utility (this expression contains ln)?

24. What is the value of 2’s utility (this expression contains ln)?