Robinson Crusoe has a technology represented by the production function y = VL where y denotes coconuts and L denotes hours of labour. His preferences %3D can be represented by the utility function u = leisure. Robinson has an endowment of 12 hours to spend per day where R+L= 12. The Pareto efficient allocation for Robinson is L= and y=. substitution to the marginal product of labour and use the production function and resource constraint for labour and leisure) yR where y denotes coconuts and R (numeric) (numeric, rounded to two decimals). (Hint: equate the marginal rate of Blank # 1 Blank # 2

Robinson Crusoe has a technology represented by the production function y = VL where y denotes coconuts and L denotes hours of labour. His preferences %3D can be represented by the utility function u = leisure. Robinson has an endowment of 12 hours to spend per day where R+L= 12. The Pareto efficient allocation for Robinson is L= and y=. substitution to the marginal product of labour and use the production function and resource constraint for labour and leisure) yR where y denotes coconuts and R (numeric) (numeric, rounded to two decimals). (Hint: equate the marginal rate of Blank # 1 Blank # 2

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter13: General Equilibrium And Welfare

Section: Chapter Questions

Problem 13.5P

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