Question
2. in a two-member community with Albert and Julie, they are going to consume commodity X and Y. their respective utility as a result of
2. in a two-member community with Albert and Julie, they are going to consume commodity X and Y. their respective utility as a result of the consumption is
for AU=3X+2Y
for BU=2X+Y
altogether 15 units X and 10 units Y are supplied. Initially Albert gets 10 X and 5 Y, the rest goes to Julie.
Question
Draw the Edgeworth box and show the initial allocation pattern
Is this allocation Pareto efficient or not. If yes, why is that? If no, what is your suggestion to achieve Pareto efficiency?
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Essentials Of Business Law
Authors: Jeffrey F Beatty, Susan S Samuelson
3rd Edition
0324537123, 9780324537123
