Question
Can you give me a guideline to solve an edgeworth box, which is pareto efficient and dont imply prices. Only original endowments. Ua(X1A,X2A)=(X1a)^(1/2) + X2A
Can you give me a guideline to solve an edgeworth box, which is pareto efficient and dont imply prices. Only original endowments.
Ua(X1A,X2A)=(X1a)^(1/2) + X2A
Ub(X1B,X2B)=2*(X1b)^(1/2) + X2B
Endowments is (10,5) for the whole economy
I know the contractcurve is: (1/2)X1a = 10-X1A
What do i do from here?
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International Business
Authors: Michael Geringer, Jeanne M. McNett, Michael S Minor, Donald A Ball
1st edition
78029376, 78029370, 1259317226, 978-1259317224
