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4. Consider the production possibilities set Y = {(y1, y2) : y2 4. Consider the production possibilities set Y { (VI, 92) : 2!J1 if
4. Consider the production possibilities set Y { (VI, 92) : 2!J1 if Yl 0, else B!JI} (a) Draw the graph of Y. (b) Show whether or not Y is closed, convex, and satisfies free disposal. (c) Characterize the set of emcienu)fpoints of Y. (d) What returns to scale property does Y exhibit, if any? (e) By repeated application of the technology defined by Y, show that it is possible to get a "free lunch."
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International Macroeconomics
Authors: Robert C. Feenstra, Alan M. Taylor
Fourth Edition
1319061729, 978-1319061722
