(Solved): our are the social planner for a world with three people. There are 8 possible outcomes which give e ...

our are the social planner for a world with three people. There are 8 possible outcomes which give each individual the utility (in "utility") shown in the table below. Outcome A, B, C ,D, E, F, G H Utility of Individual #1: 2 ,13, 15, 13, 3, 14, 4, 12 Utility of Individual #2: 6, 13, 12 ,18, 4, 14, 5, 15 Utility of Individual #3: 24, 11, 3, 5, 17, 12, 18, 5 You like all these individuals, although not necessarily equally. (a) Which outcomes are Pareto E

ient? Which are not? Explain your reasoning. (b) As an economist, which of the Pareto E

ient outcomes is the most desirable? Explain. (c) As an economist, would you choose one of the outcomes that is not Pareto E

ient? Explain. (d

Suppose the world is initially at an allocation that is not Pareto E

ient. Will all of the Pareto E

ient outcomes identi

in part (a) be a Pareto Improvement? Explain