Question
In an exchange economy there are two people (A and B, and two goods (x1 and x2). Their respective utility functions and endowments are: UA(x1A,
In an exchange economy there are two people (A and B, and two goods (x1 and x2). Their respective utility functions and endowments are: UA(x1A, x2A) = x1A + 3x2A, UB(x1B, x2B) = 3x1B + x2B, A= (3/2, 3/2), B= (3/2, 3/2). What are the minimum and maximum possible amounts of x1A in the core and is allocation (0, 1.75,3, 1.25) in the core?
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Microeconomics
Authors: David Besanko, Ronald Braeutigam
5th edition
1118572270, 978-1118799062, 1118799062, 978-1118572276
