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Please draw the diagram 5. Consider the Edgeworth Box diagram below for two individuals named Ernst Robinson and Fn'tz Robinson who are stranded on a
Please draw the diagram
5. Consider the Edgeworth Box diagram below for two individuals named Ernst Robinson and Fn'tz Robinson who are stranded on a deserted island. . Answer the Ffltl questions in parts (a)- (i). (Note, in all cases. partial credit will be awarded based on your explanations.) 3) Suppose Emst and Fritz have 2 commodities: coconuts and sh. Ernst has a total of 100 coconuts and 25 sh. Fritz has 50 coconuts and 75 sh. Label the four sides of the Edge-worth Box appropriately, (3 points) b) In the Edgeworlh Box. label their respective utility (indifference) El' [15! curves and indicate which utility (indifference) represents a higher level of satisfaction. (3 points) c) Clearly designate the current consumption point of Ernst and Fritz in the Edgeworth Box. Explain. (3 points) d) Draw the contract curve in the Edgeworth Box, and briefly explain what a contract curve is and how you know where to draw it. (3 points) g) In the graph to the right, construct a utility possibilities curve. Label the axes. Include enough information in the graph here and the Edgeworth Box in part (d) to show how they are connected. Briey explain. (5 points)Step by Step Solution
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