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Alice and Bob live in a two-person two-good exchange economy. Their utility functions are uA(xA1 , xA2) = xA1 + xA2 and uB(xB1 , xB2)
Alice and Bob live in a two-person two-good exchange economy. Their utility functions are uA(xA1 , xA2) = xA1 + xA2 and uB(xB1 , xB2) = xB1(xB2)^2 . Their endowments are both (6, 6). (a) By the First Fundamental Theorem, the competitive allocation must be in the core. How would you check this directly
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