are Consider an economy inhabited by George and Harriet, whose utility functions UG= (ac)1/2 (bg) 1/2 Uнан+2bн The total quantities of ale and bread that can be produced by the economy are a and b, and they are constrained by the production function b=2(10 a)1/2 There are infinitely many Pareto optimal allocations. In one of them, Harriet's utility is 8. a) An allocation in this economy is described by a list of four variables. What are these variables? b) What four equations describe the Pareto optimal allocation in which Harriet's utility is 8? c) Find this Pareto optimal allocation.

are Consider an economy inhabited by George and Harriet, whose utility functions UG= (ac)1/2 (bg) 1/2 Uнан+2bн The total quantities of ale and bread that can be produced by the economy are a and b, and they are constrained by the production function b=2(10 a)1/2 There are infinitely many Pareto optimal allocations. In one of them, Harriet's utility is 8. a) An allocation in this economy is described by a list of four variables. What are these variables? b) What four equations describe the Pareto optimal allocation in which Harriet's utility is 8? c) Find this Pareto optimal allocation.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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