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= Consider an exchange economy with two identical consumers A and B. Their common utility function is U'(x, y) A, B and 0 a
= Consider an exchange economy with two identical consumers A and B. Their common utility function is U'(x, y) A, B and 0 a 1. Society has 10 units of good x and 10 units of good y in all. Find endowments w, and w, and equilibrium prices that will support the equal division of the resources among the two individuals (the bundle (5,5) for each) as a competitive equilibrium.
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
538453257, 978-0538453257
