Question
Consider a one-consumer one-firm economy in which u(x) = (x z ) 3 (x q ) 2 , = 2 and f(z) = z. a)
Consider a one-consumer one-firm economy in which u(x) = (xz)3(xq)2, = 2 and f(z) = z.
a) Illustrate this economy in an Edgeworth Box
b) Derive the Pareto set of this economy.
c) Fix some Pareto-Efficient allocations from b) and derive a competitive equilibrium for this economy that generates these allocations.
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Business Its Legal Ethical and Global Environment
Authors: Marianne M. Jennings
11th edition
1337103578, 978-1337514392, 133751439X, 978-0357690130, 978-1337103572
