The production possibility frontier for X and Y consists of all the efficient allocations in the Edgeworth box. Explain why this is so. Also explain why inefficient points in the box would be inside the production possibility frontier.
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- The allocation where D1, D2, D3, D4, and D8 consume and S1, S2, S3, S4, and S5 sell is not Pareto efficient because... (hint: you can prove that an allocation is not Pareto Efficient by showing that there's a better way to allocate the widget. Which of the following choices is better (more efficient) than the proposed allocation where D1, D2, D3, D4, and D8 consume and S1, S2, S3, S4, and S5 sell?) Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.options for blank three drop down: efficient allocation OR over-provision OR under-provisionExplain the statement true or false. Give an example to explain your answer. "It is possible to have a Pareto efficient allocation where someone is worse off than she is at an allocation that is not Pareto efficient"
- Alice can produce goods X and Y. It takes her 1 hour of labor to produce 2 units of X. It takes 2 hours of labor to produce three units of Y. If Alice divides four hours of her time between the two tasks, which of the following (X, Y) allocations are efficient? Could be more then one answer. (3, 4) (8, 0) (4, 3) (5, 1)1. Consider allocations b-f (meaning points a, b, and f). Which allocations(s) A. are better for Ross than “a” (ignoring Rosa)? B. are better for Rosa than “a” (ignoring Ross)? C. are worse for both Ross and Rosa than “a”? D. are better for both Ross and Rosa than “a”? E. are Pareto superior to “a”?Amy and Lela have following preferences for apples, pears and bananas where > means "preferred to." Amy: apple > pear > banana Lela: banana > apple > pear Assume there is one apple, one banana and one pear to divide between Amy and Lela and that they have no other goods. For each of the following allocations, say whether it is (Pareto) efficient or inefficient. 1. Amy gets the apple and the pear and Lela gets the banana [ Select ] ["Efficient", "Inefficient"] 2. Amy gets the banana and Lela gets the apple and the pear [ Select ] ["Efficient", "Inefficient"] 3. Amy gets the pear, apple and banana and Lela gets nothing [ Select ] ["Efficient", "Inefficient"]
- Consider two people in the market for tilapia, Reagan and Cheryl. The marginal benefit curves for both individuals are shown in the accompanying graph. a. Suppose the market price of tilapia is $2.00 per pound. Move point A to Cheryl’s quantity purchased. Move point B to Reagan’s quantity purchased. b. How many pounds of tilapia do they collectively purchase? _________ pounds c. To achieve an efficient allocation, Cheryl should purchase _______(more tilapia than, the same amount of tilapia as, less tilapia than) she is currently purchasing, and Reagan should purchase ________ (more tilapia than, the same amount of tilapia as, less tilapia than) she is currently purchasing.Let there be 3 people in the economy. Let the utility function of person 1 be u=min(x,y), utility of person 2 be = max(x,y) and the utility function of the 3rd consumer be U=x+y. Let the endowment points be A(5,5), B(5,5) c(5,5). An example of a pareto efficient allocation is: A) A(5,5), B(5,5) c(5,5) B) A(5,5), B(5,0) c(10,5) C) A(5,5), B(0,5), c(5,10) D) None of the above The correct answer is D. Explain clearly. Also, please state the pareto effient outcome not mentioned in the options (if it exists).Angela and Theresa visit a sporting goods store to buy a new set of golf clubs. Angela is willing to pay up to $750 for the golf clubs, Theresa is willing to pay up to $850. The price is $575, unfortunately, there is only one set of golf clubs available at the moment! The efficient allocation of resources is when Theresa buys the golf clubs Neither Theresa nor Angela buys the golf clubs Angela buys the golf clubs No efficient allocation is possible at P = $575 because at this price quantity demanded is greater than quantity supplied. Either Theresa or Angela buys the golf clubs
- Two individuals, Fred and Helen, are in an economy with no production, and each have the utility function U = 10XY. Prices of both X and Y are set at $1. Initial endowments for Fred are 10 units of X and 6 units of Y. Helen has 8 units of X and 12 units of Y. Find the general equilibrium prices and allocation, then show that the G.E. allocation is Pareto efficient.State the first theorem of welfare economics of a production and exchange economy. Which conditions must be satisfied for the Pareto efficiency of an allocation of a production and exchange economy (assuming that all goods are used, produced and consumed in strictly positive quantities)? Discuss and explainChicken production generally results in terrible odours that are carried by the wind to rural communities. This is an example of a ______________, with a result of ____________ of resources in chicken production.a. Negative externality, under-allocationb. Positive externality, over-allocationc. Positive externality, over-allocationd. Negative externality, , over-allocationFor each of the alternatives, explain which one is correct and also explain which ones are false or uncertain.
