2) Fill in the missing information in the following tables. For each table, use the information provided to identify a possible trade. Then identify the final allocation and a possible value for the MRS at the efficient solution. (Note: There is more than one correct answer.) Illustrate your results using Edgeworth Box diagrams. Norman's MRS of food for clothing is 1 and Gina's MRS of food for clothing is а. 4: Individual Initial Allocation Trade Final Allocation Norman 6F, 2C Gina 1F, 8C b. Michael's MRS of food for clothing is 1/2 and Kelly's MRS of food for clothing is 3. Individual Initial Allocation Trade Final Allocation Michael 10F, 3C Kelly 5F, 15C
2) Fill in the missing information in the following tables. For each table, use the information provided to identify a possible trade. Then identify the final allocation and a possible value for the MRS at the efficient solution. (Note: There is more than one correct answer.) Illustrate your results using Edgeworth Box diagrams. Norman's MRS of food for clothing is 1 and Gina's MRS of food for clothing is а. 4: Individual Initial Allocation Trade Final Allocation Norman 6F, 2C Gina 1F, 8C b. Michael's MRS of food for clothing is 1/2 and Kelly's MRS of food for clothing is 3. Individual Initial Allocation Trade Final Allocation Michael 10F, 3C Kelly 5F, 15C
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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