Are the following decisions Pareto improving? Pareto optimal? Explain why or why not.
(a) The restaurant owner in 1(b) spent $10,000 to install the separate ventilation systems but felt it was worth it in terms of improved customer satisfaction and resulting increase in visits.
(b) The restaurant in 1(b) has employees as well as customers. The owner requires the employees, regardless of whether or not they like cigarette smoke, to work in both the smoking and nonsmoking parts of the restaurant.
(c) The homeowner in 1(d) decided not to install a radon ventilation system, because he was unwilling to pay more than $500 (the cost to him of the additional risk due to radon exposure) to eliminate the radon in his house.
(d) Because 10 neighbors of the homeowner in 1(d) would benefit $100 each from reduced health risks due to radon if the homeowner put in the ventilation system, the homeowners' association for the neighborhood required the homeowner to install the abatement system.