PS14 - Intermediate Microeconomics, Winter 2008 Problem...

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Intermediate Microeconomics, Winter 2008 Problem Set No 14 This problem set will not be collected. Please, answer the following questions from the book: 10.14, 10.15, Bruce. Explain why point "a" cannot be a competitive equilibrium. Q2) Explain how it is possible for one of two people in a two-good economy to have an absolute advantage in producing both goods, but trade can still 1
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with two members, Al and Bruce. If point "a" is the e¢ cient product mix, draw a possible Edgeworth box and indi/erence curves. (or any such linear combination) and Canada can produce six units of food and four units of clothing (or any such linear combination). Is it ever e¢ cient for the US to produce only food? only clothing? both food and clothing? Multiple Choice Questions: M1) Joe and Rita each have some milk and cookies (Milk on the horizontal axis). Joe±s MRS of cookies for milk is two. Rita±s MRS of cookies for milk is
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This note was uploaded on 12/10/2011 for the course ECON 401 taught by Professor Burbidge,john during the Winter '08 term at Waterloo.

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PS14 - Intermediate Microeconomics, Winter 2008 Problem...

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