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Economics question thanks. 3. Recall the divide-the-dollar example discussed in class. In that example there are two individuals (A and B), and the set of
Economics question thanks.
3. Recall the divide-the-dollar example discussed in class. In that example there are two individuals (A and B), and the set of feasible allocations is X = {(2A, 2B): 2A > 0,23 > 0,2A +2B 0 is a positive constant. i. Derive an expression for the best allocation in X according to the utilitarian criterion as a function of X. ii. Are there any positive values of 1 for which (0,100) is optimal according to the utilitarian criterion? What about (100,0)Step by Step Solution
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