Question
1.a) Bill has a utility function over food and transport with the equation U = x2y, where x measures the quantity of food consumed and
1.a) Bill has a utility function over food and transport with the equation U = x2y, where x measures the quantity of food consumed and y measures the quantity of transport. Show that a consumer with this utility function believes that "more is better than less" for each good.
b) Why is it not generally socially efficient to set an emissions standard allowing zero pollution?
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Introduction to Econometrics
Authors: James H. Stock, Mark W. Watson
3rd edition
133595420, 978-0138009007, 138009007, 978-0133486872, 133486877, 978-0133595420
