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See the equation attached below, then find the pareto optimal allocation, core allocation, competitive allocation, and then indicate them in the edgeworth box! 3. [30
See the equation attached below, then find the pareto optimal allocation, core allocation, competitive allocation, and then indicate them in the edgeworth box!
3. [30 point] Consider the pure exchange economy b CREU UZ wwe in which W1 = (4,2); U,(my) = Vx1)1 W2 = (2,4); U2(X2. V2) = X2)/2 a. Find the Pareto Optimal Allocation! (7 point) b. Find the Core Allocation! (7 point) c. Find the Competitive Allocation! (8 point) d. Indicate them in the Edgeworth box and if an individual-1 offer (4,4) to individual-2, should individual-2 will accept or reject? Why do he/she reject or accept the offer? (8 point)Step by Step Solution
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