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In a competitive economy with two goods X and Y , the marginal cost of producing X is MC X =20+5 X . The marginal
In a competitive economy with two goods X and Y, the marginal cost of producing Xis
MCX=20+5X. The marginal cost of producing Yis MCY = 10+10Y. The G.E. Prices are
pX=5, and pY=5. If consumer's utility is U=lnX+lnY, what are the G.E allocations of X and Y? Show this G.E. allocation on a diagram.
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