1. Describe a situation in your area or in the news in which a maximization of net financial gain might differ from a maximization of social welfare.
2. At her current consumption levels, Megan receives 15 utils from an additional cup of tea and 300 utils from an additional pair of sandals. The price of tea is $1 and the price of sandals is $30 per pair. How can you tell whether Megan is allocating her money efficiently? If she is not, what would be a wise first step toward utility maximization?
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