1. Assume utility is described for two individuals as: A: U=X3Y, MUX=3X2Y, MUY=X3
B: U= XY ,MUX=Y, MUY=X
Each person currently has 10 units of both goods. 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.
Recently Asked Questions
- Assume the returns on an asset are normally distributed. Suppose the historical average annual return for the asset was 7.3 percent and the standard deviation
- 1. “Status is an important social construct because the positions we occupy lead to the roles that we play” is a quote from your textbook. How would
- Carol, a 58 year old female, presents to your clinic with fatigue and difficulty catching her breath. Although she has frequently coughed for months, the