Suppose further that there are only two individuals in the economy, A and B, and their utility function is given as: U(XAYA) = XA0.2YA°0.8 , U(XBYB) = Xgº.8YB02 Deriving the %3D required condition for efficiency (or the contract curve equation) for consumer A (XA = YA), the MRSXA = MRSXYB equation leads to YA = %3D [ Select ] The required efficiency equation is XA = [ Select ] given that the economy has 10 units each of goods X and Y.
Suppose further that there are only two individuals in the economy, A and B, and their utility function is given as: U(XAYA) = XA0.2YA°0.8 , U(XBYB) = Xgº.8YB02 Deriving the %3D required condition for efficiency (or the contract curve equation) for consumer A (XA = YA), the MRSXA = MRSXYB equation leads to YA = %3D [ Select ] The required efficiency equation is XA = [ Select ] given that the economy has 10 units each of goods X and Y.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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please answer and explain
![Suppose further that there are only two individuals in the
economy, A and B, and their utility function is given as:
U(XAYA) = XA0.2YA°0.8 , U(XBYB) = Xg0.8YBO.2 Deriving the
required condition for efficiency (or the contract curve
equation) for consumer A (XA = YA), the MRSXA =
MRSXYB equation leads to YA =
%3D
[ Select ]
The required efficiency equation is XA
[ Select ]
given that the economy has
10 units each of goods X and Y.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F77bd68f2-0b0c-49f0-879a-c9222f3de79f%2F756c6742-1815-4e3b-9065-7382e2ce7991%2Fds8agks_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose further that there are only two individuals in the
economy, A and B, and their utility function is given as:
U(XAYA) = XA0.2YA°0.8 , U(XBYB) = Xg0.8YBO.2 Deriving the
required condition for efficiency (or the contract curve
equation) for consumer A (XA = YA), the MRSXA =
MRSXYB equation leads to YA =
%3D
[ Select ]
The required efficiency equation is XA
[ Select ]
given that the economy has
10 units each of goods X and Y.
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