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Assume that consumers A and B both face the same standard Cobb-Douglas utility function, U = sqrthY) Assume the total endowment ofX in the economy
Assume that consumers A and B both face the same standard Cobb-Douglas utility function, U = sqrthY) Assume the total endowment ofX in the economy is 100 units and the total endowment of Y in the economy is 50 units. 1. Find the MRSA 2. Find the MRSB 3. Find the Contract Curve 4. Assuming A's endowment is 75 X and 25 Y and B's endowment is 25 X and 25 Y, solve for the final allocation of goods
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