Question
Jason has a utility function of uJ ( c 1, c 2) = ln( c 1) + 21 ln( c 2). Tahani has a utility
Jason has a utility function of uJ (c1, c2) = ln(c1) + 21 ln(c2). Tahani has a utility function of uT (c1, c2) = min {c1, c2} . The endowments are eJ = (1, 2) and eT = (2,1).
a. Define the competitive equilibrium for this economy. b. Calculate the market clearing prices and the equilibrium allocation.
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
538453257, 978-0538453257
