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Apr 14, 2017 at 7:52 comment added Amit At the corner, condition for Pareto optimality is MRS $ = a\geq 5$. Refer to my answer for the picture proof: economics.stackexchange.com/a/16270/11824
Apr 14, 2017 at 7:51 comment added Giskard So am I. Consider the extreme example of $U_A(x_1,x_2) = 2x_1 + x_2$ and $U_B(x_1,x_2) = x_1 + 2x_2$. The allocation where $A$ gets (1,0) and $B$ get (0,1) is clearly PO but $MRS_A = 2 \neq 1/2 = MRS_B$. The same will be true in some cases in this question.
Apr 13, 2017 at 22:26 comment added Bensstats @denesp the question cited is talking about envy free allocation and I'm giving the answer for Pareto optimal
Apr 13, 2017 at 21:46 comment added Giskard $$MRS_1=MRS_2$$ is only required in interior points. The allocation given in the question is not an interior point.
Apr 13, 2017 at 20:11 history undeleted Bensstats
Apr 13, 2017 at 19:48 history deleted Bensstats via Vote
Apr 13, 2017 at 19:47 history answered Bensstats CC BY-SA 3.0