Question
U1(x 1 , y 1 ) = 5(x 1 y 1 ) 3 + 12 U2(x 2 , y 2 ) = 3lnx 2 +
U1(x1, y1) = 5(x1y1)3 + 12 U2(x2, y2) = 3lnx2 + 25lny2 + 10 W1 = (7,3) and W2 = (4,6) a. Characterize the Pareto efficient allocations and contract curve (
b. Which allocations are in the core c. Find the Competitive/Walrasian equilibrium for this problem
d. Is the allocation found in c in the core? Why?
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Microeconomics
Authors: David Laibson, John List
Global Edition 1st Edition
1292079576, 978-1292079578
