1. Consider a two-person, two-commodity, pure exchange economy with: Un = giga, Un =q12, 911 +921=91, and 912 +922 = 92 (ii) What conditions on the coefficients a and ß will ensure that the contract curve is a straight line?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter15: Contracting, Governance, And Organizational Form
Section: Chapter Questions
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Q06
1. Consider a two-person, two-commodity, pure exchange economy with:
Un =g42, Uz = 1922,
911 +921=91, and 912 +922 = = 92
(ii) What conditions on the coefficients a and ß will ensure that the contract
curve is a straight line?
Transcribed Image Text:Q06 1. Consider a two-person, two-commodity, pure exchange economy with: Un =g42, Uz = 1922, 911 +921=91, and 912 +922 = = 92 (ii) What conditions on the coefficients a and ß will ensure that the contract curve is a straight line?
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