1. (24 marks) Consider a league consisting of two teams (Team 1 and Team 2) with utility functions given by U = wit wit and Up = w1,Wit : respectively, where 0a =1. Team 1 is endowed with all the talent in period t and Team 2 is endowed with all the talent in period + 1 (ie, 2, =1, e, =0, e,, =0 and ez =1). Team 1's marginal utilities are given by MU, = 0.5w] wis, and MUj =0.5wpuff and Team 2's marginal utilities are given by MU, =aww,4 and MU, = (1-a) we,wa a. (2 marks) Calculate Team 1's marginal rate of substitution. b. (2 marks) Calculate Team 2's marginal rate of substitution. c. (2 marks) Calculate the equation for the contract curve in the form Wi = f(wj). . . . A solution to this question has been requested by another student. It will be ready shortly.d. (2 marks) Briefly explain for what values of a the contract curve is linear, concave and convex. e. (2 marks) Calculate the minimum level of utility that Team 1 expects in equilibrium. f. (2 marks) Calculate the minimum level of utility that Team 2 expects in equilibrium. g. (2 marks) Briefly describe the core. View answer and explanation V h. (2 marks) Use the fact that Team 1's utility function is Cobb-Douglas to state its Marshallian demands for period t and period t + 1. (Hint: state income in terms of the endowment.)i. (2 marks) Use the fact that Team 2's utility function is Cobb-Douglas to state its Marshallian demands for period : and period + + 1. (Hint: state income in terms of the endowment.) j. (2 marks) Use the results in parts (h) and (i) along with the fact that market demand equals market supply in each period to determine the equilibrium relative price ratio, (Hint: the answer is a function of a.) k. (2 marks) Substitute the result from part (j) back into parts (h) and (i) to restate each team's Marshallian demands as functions only of a. Need the answer? . 4856 tutors online. Answers in as fast as 15 minutes. Get it-with an explanation 1. (2 marks) Briefly explain the role of a in this