Question
2. General Equilibrium Consider, U1(x1, y1) = 4(x1y1) ^3 U2(x2, y2) = 4(x2y2) ^3 W1 = (8, 3) and W2 = (4, 7) a. Characterize
2. General Equilibrium Consider, U1(x1, y1) = 4(x1y1) ^3 U2(x2, y2) = 4(x2y2) ^3 W1 = (8, 3) and W2 = (4, 7)
a. Characterize the Pareto efficient allocations and contract curve.
b. Which allocations are in the core?
c. Find the Competitive/Walrasian equilibrium for this problem.
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Intermediate Microeconomics
Authors: Hal R. Varian
9th edition
978-0393123975, 393123979, 393123960, 978-0393919677, 393919676, 978-0393123968
