Suppose there are two consumers a and b the utility, Ask an Expert

Economics

Suppose there are two consumers, A and B. The utility functions of each consumer are given by: UA(X,Y) = X+2Y UB(X,Y) = X*Y The initial endowments are: A: X = 2; Y = 8 B: X = 2; Y = 8 a) Using an Edgeworth Box, graph the initial allocation and draw the indifference curve for each consumer that runs through the initial allocation. Be sure to label your graph carefully and accurately. b) What is the marginal rate of substitution for consumer A at the initial allocation? c) What is the marginal rate of substitution for consumer B at the initial allocation? d) Is the initial allocation Pareto Efficient?

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M91719103

Have any Question?Write your Review or question?

Related Questions in Business Economics

What are three ways that even every forecast model should

What are three ways that even every forecast model should be evaluated to obtain the best forecast result.

In a large organization 55 of all employees are female 25

In a large organization, 55% of all employees are female, 25% of the employees have a business degree, and 40% of all males have a business degree. What is the probability that an employee has a business degree given tha ...

How do you calculate the annual interest rate of 12

How do you calculate the annual interest rate of 12% compounded monthly. I know how to do for annually but not monthly. You are offered the opportunity to put some money away for retirement. You will receive 10 annual pa ...

Now assume that a country a takes 100 hours to produce 20

Now assume that a country A takes 100 hours to produce 20 aircraft or 10 jet engines and country B takes 100 hour to produce 15 aircraft or 5 jet engines. Which country has an absolute advantage in which product? Does ei ...

Fifty-three percent of employees make judgements about

Fifty-three percent of employees make judgements about their co-workers based on the cleanliness of their desk. You randomly select 8 employees and ask them if they judge co-workers based on this criterion. The random va ...

A company is considering producing a new product based on

A company is considering producing a new product. Based on past records, management believes that there is a 70 percent chance that the new product will be successful, and a 30 percent chance it will not be successful. M ...

Practical exercise 1assume the demand for teachers ld in a

Practical Exercise 1: Assume the demand for teachers (Ld) in a school is given by the following equation: W = 1700 - 2L D and the supply of teachers (L S ) depends on whether the school is a public school or private sch ...

Given the probability distribution functionx 0 1

Given the probability distribution function: x 0 1 2 Probability 0.25 0.50 0.25 a. Graph the probability distribution function. b. Calculate and graph the cumulative probability distribution. c. Find the mean of the rand ...

Determine the minimum sample size required when you want to

Determine the minimum sample size required when you want to be 98% confident that the sample mean is within two units of the population mean. Assume a standard deviation of 4.82 in a normally distributed population.

Roza from stv recently said that fiscer will start paying

Roza from STV recently said that Fiscer will start paying dividends in the medium term future because of all of the cash flow that it generates (coupled with a cash balance in excess of $20 billion). When pressed on the ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert