Suppose further that there are only two individuals in the economy, A and B, and their utility function is given as: U(XAYA) - XA0YA0.8, U(XBYB) = XB0.8YB0.2 Deriving the required condition for efficiency (or the contract curve equation) for consumer A (XAYA), the MRSxy^= MRSXY³ equation leads to YA [ 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) - XA0YA0.8, U(XBYB) = XB0.8YB0.2 Deriving the required condition for efficiency (or the contract curve equation) for consumer A (XAYA), the MRSxy^= MRSXY³ equation leads to YA [ Select] The required efficiency equation is XA = [Select] given that the economy has 10 units each of goods X and Y.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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3. Answer the problem and provide solutions.

Suppose further that there are only two individuals in the economy, A and B, and their utility function is given as: U(X,YA) = X,0.2YA0.8 , U(XgYg) =
Xg0.8YB0.2 Deriving the required condition for efficiency (or the contract curve equation) for consumer A (XA = YA), the MRSXA = MRSXYB equation
leads to YA = ISelect )
The required efficiency equation is XA =
[ Select )
given that the economy has 10 units each of goods X and Y.

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