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Consider the following two-person (1 and 2) two-good (X and Y) economy. The Tom's utility function is given by Ur = bit/MT: where xi and
Consider the following two-person (1 and 2) two-good (X and Y) economy. The Tom's utility function is given by Ur = bit/MT: where xi and yi denote respectively person i's the consumption amount of good X and good Y, i=1, 2. The value of parameter bi is b1 = 4 for person 1 and b2 = 1 for person 2. Suppose the economy has a total of 105 units of good X and 183 units of good Y. Derive the equation of the economy's "contract curve" equation and the economy's utility possibilities frontier equation. Then enter the value of the utility possibilities frontier slope, dU2/dU1 , below
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