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Assume utility is described for two individuals as: U A= min[X,Y ] U B= min[ 2X, Y] Each person has five units of X and 10 units of Y.

3.  Assume utility is described for two individuals as:  UA= min[X,Y ] UB=min[ 2X, Y]

Each person has five units of X and 10 units of Y.  Draw an Edgeworth Box showing the current endowment and each person's indifference curve through that endowment.  Be sure to highlight an area that represents all potential Pareto improvements if the initial endowment is not Pareto efficient

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The utility function of A and B is given as: uA=min [X,Y] uB=min [2X,Y] Then each consumer consumes X and Y in fixed... View the full answer

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