Author Question: Only individuals A and B live on a desert island where no production is possible. A is endowed with ... (Read 621 times)

Engineer

  • Hero Member
  • *****
  • Posts: 527
Only individuals A and B live on a desert island where no production is possible. A is endowed with 12 units of good X and 18 units of good Y. B is endowed with 6 units of good X and 42 units of good Y. In the Edgeworth box, good X is measured on the horizontal axis. Individual A's utility function is so her MUX = 3Y and her MUY = 3X. Individual B's utility function is UB = 10 so his and his MUY = 5. Which of the following allocations are on the contract curve?
◦ (XA = 9, YA = 30), (XB = 9, YB = 30)
◦ (XA = 10, YA = 28), (XB = 8, YB = 32)
◦ (XA = 12, YA = 24), (XB = 6, YB = 36)
◦ None of the above.


Chou

  • Sr. Member
  • ****
  • Posts: 335

Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

Chou

  • Sr. Member
  • ****
  • Posts: 335

cookcarl

  • Hero Member
  • *****
  • Posts: 539
Only individuals A and B live on a desert island where no production is possible. A is endowed with 15 units of good X and 17 units of good Y. B is endowed with 13 units of good X and 23 units of good Y. In the Edgeworth box, good X is measured on the horizontal axis. Individual A's utility function is and her MUY = 3X. Individual B's utility function is UB = 10 so his and his MUY = 5. Which of the following allocations are on the contract curve?
◦ (XA = 15, YA = 17), (XB = 13, YB = 23)
◦ (XA = 14, YA = 20), (XB = 14, YB = 20)
◦ (XA = 18, YA = 22), (XB = 10, YB = 18)
◦ None of the above.



ladyjames123

  • Sr. Member
  • ****
  • Posts: 346

 

Did you know?

Increased intake of vitamin D has been shown to reduce fractures up to 25% in older people.

Did you know?

Less than one of every three adults with high LDL cholesterol has the condition under control. Only 48.1% with the condition are being treated for it.

Did you know?

Fatal fungal infections may be able to resist newer antifungal drugs. Globally, fungal infections are often fatal due to the lack of access to multiple antifungals, which may be required to be utilized in combination. Single antifungals may not be enough to stop a fungal infection from causing the death of a patient.

Did you know?

The top five reasons that children stay home from school are as follows: colds, stomach flu (gastroenteritis), ear infection (otitis media), pink eye (conjunctivitis), and sore throat.

Did you know?

The average human gut is home to perhaps 500 to 1,000 different species of bacteria.

For a complete list of videos, visit our video library