« previous next »

Author Question: Only individuals A and B live on a desert island where no production is possible. A is endowed with ... (Read 595 times)

Engineer

  • Hero Member
  • *****
  • Posts: 527
on: Jun 18, 2019
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.
Microeconomics ¦ Perloff ¦ 8th Edition
Buy Test-Bank


Chou

  • Sr. Member
  • ****
  • Posts: 335
Reply #1 on: Jun 18, 2019
(XA = 9, YA = 30), (XB = 9, YB = 30)


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

Engineer

  • Hero Member
  • *****
  • Posts: 527
Reply #2 on: Jun 18, 2019
Excellent


Chou

  • Sr. Member
  • ****
  • Posts: 335
Reply #3 on: Jun 18, 2019
Great! Please up vote :D


cookcarl

  • Hero Member
  • *****
  • Posts: 539
Reply #4 on: Jun 18, 2019
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
Reply #5 on: Jun 18, 2019
(XA = 14, YA = 20), (XB = 14, YB = 20)


« previous next »
 

Did you know?

A serious new warning has been established for pregnant women against taking ACE inhibitors during pregnancy. In the study, the risk of major birth defects in children whose mothers took ACE inhibitors during the first trimester was nearly three times higher than in children whose mothers didn't take ACE inhibitors. Physicians can prescribe alternative medications for pregnant women who have symptoms of high blood pressure.

Did you know?

Cutaneous mucormycosis is a rare fungal infection that has been fatal in at least 29% of cases, and in as many as 83% of cases, depending on the patient's health prior to infection. It has occurred often after natural disasters such as tornados, and early treatment is essential.

Did you know?

Many of the drugs used by neuroscientists are derived from toxic plants and venomous animals (such as snakes, spiders, snails, and puffer fish).

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

Did you know?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

Female individuals of the banded Uromastyx, Uromastyx flavofasciata, are different colours. Most nat Female individuals of the banded Uromastyx, Uromastyx flavofasciata, are different colours. Most nat
Desert Desert
Structures of Voice Production Structures of Voice Production
A wide variety of pathogens may live on or in the human body. A wide variety of pathogens may live on or in the human body.
Video: Aneurysm

For a complete list of videos, visit our video library