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Unformatted text preview: x 1 +x 2 =1 z 1 +z 2 =1 a) Find the condition for Pareto optimality. b) In an Edgeworth box, plot the contract curve for the following cases: =1/4, =1/2, =3/4. Interpret any differences between these three contract curves. c) Plot the utilities possibilities frontier for the case of =1/2....
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This note was uploaded on 07/22/2010 for the course ECON 1480 taught by Professor Knight during the Spring '10 term at Brown.
- Spring '10