Question
Consider a one-consumer one-firm economy in whichu(x) = (x z ) 3 (x q ) 2 ,= 2 andf(z) =z. (a)Illustrate this economy in an
Consider a one-consumer one-firm economy in whichu(x) = (xz)3(xq)2,= 2 andf(z) =z.
(a)Illustrate this economy in an Edgeworth box. (b)[2]Derive the Pareto set of this economy.
(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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Intermediate Microeconomics
Authors: Hal R. Varian
9th edition
978-0393123975, 393123979, 393123960, 978-0393919677, 393919676, 978-0393123968
