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I would like some detailed assisatance with the following public finance economic question below 3. Consider the concave utility possibilities frontier corresponding to: 1/2 U(Norman)
I would like some detailed assisatance with the following public finance economic question below
3. Consider the concave utility possibilities frontier corresponding to: 1/2 U(Norman) + U(Edna) = 16 (eq 1) Associated with the Social Welfare Function of the form: U = U(Norman) * U(Edna) Given the utility functions of Norman and Edna as follows: (Norman) = 1qchips + 19 coke (eq 2) U(Edna) = qchips 1/4 * q coke 1/4 (eq3) (a) Calculate the maximising level of utilities for Norman and Edna. (Hint: To differentiate (eq 4) it's easier to take the log on both sides of the equation) (b) Calculate the allocations of OutputStep by Step Solution
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