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Question: 10 in an exchange economy the set of feasible pareto...

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10. In an exchange economy, the set of feasible, Pareto optimal allocations for Omar and Marlo is given by
the equation x2= 2x1. Supposing endowments of ωo= {8, 4} and ωm= {1, 5} for Omar and Marlo
respectively, and the equilibrium prices of each good are the same, what is Omar’s optimal amount of
good 2?
(a) 4
(b) 8
(c) 1
(d) 2

Answer B

could you please explain?

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