Question
Consider a one-consumer one-firm economy in which u(x) = (x z ) 3 (x q ) 2 , an endowment of = 2 and a
Consider a one-consumer one-firm economy in which u(x) = (xz)3(xq)2, an endowment of = 2 and a function of f(z)=z
a) Derive the Pareto set of this economy.
b) Fix some Pareto-Efficient allocations from "a)" and derive a competitive equilibrium for this economy that generates these allocations
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Macroeconomics
Authors: Charles I. Jones
1st Edition
978-0393926385, 0393926389
