2. You and your sister are dividing a cake. Your sister is always craving for more...

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2. You and your sister are dividing a cake. Your sister is always craving for more food: she always prefers more to less. You, on the other hand, prefer more to less up to 3/4 of the cake; beyond that, you can still eat it but will not derive any extra utility. Consider the following divisions: a: your sister has the whole cake and you have none. B: you have the whole cake and your sister has none. y: your sister and you share the cake equally. 8: you have 1/4 of the cake and your sister has 1/2 of the cake. e: you have 4/5 of the cake and your sister has 1/5 of the cake. 2.1. Identify those divisions that are Pareto efficient. Explain your answers. 2.2. Identify those divisions that are weakly Pareto efficient. Explain your answers. 2. You and your sister are dividing a cake. Your sister is always craving for more food: she always prefers more to less. You, on the other hand, prefer more to less up to 3/4 of the cake; beyond that, you can still eat it but will not derive any extra utility. Consider the following divisions: a: your sister has the whole cake and you have none. B: you have the whole cake and your sister has none. y: your sister and you share the cake equally. 8: you have 1/4 of the cake and your sister has 1/2 of the cake. e: you have 4/5 of the cake and your sister has 1/5 of the cake. 2.1. Identify those divisions that are Pareto efficient. Explain your answers. 2.2. Identify those divisions that are weakly Pareto efficient. Explain your answers.

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21 The divisions that are Pareto efficient are y and e The division y is Pareto efficient because it ... View the full answer