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.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter8: Game Theory

Section: Chapter Questions

Problem 8.7P

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