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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
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.
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(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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