Explain what is the set of pareto optimal allocations

Assignment Help Macroeconomics

Reference no: EM13220924

Amaranda and Bartolo consume only two goods, X and Y. They can trade only with each other and there is no production. The total endowment of good X equals the total endowment of good Y. Amaranda's utility function is U(xA, yA) = max{xA, yA} and Bartolo's utility function is U(xB, yB) = max{xB, yB}. In an Edgeworth box for Amaranda and Bartolo, the set of Pareto optimal allocations is?

Reference no: EM13220924

Questions Cloud

Analyze the time complexity and space complexity : Develop a simple prototype version of algorithm in C++. Specifically, you will build an in-place, order reversal algorithm - analyze the time complexity and space complexity of your algorithm

Find competitive equilibrium prices and consumptions for eac : 1,000 of them have utility functions U(x, y) = x + y and 1,000 of them have utility functions U(x, y) = min{ 2x, y}. Everybody has an initial allocation of 1 unit of x and 1 unit of y. Find the competitive equilibrium prices and consumptions for e..

Explain what is the boiling point of cyclohexane : A liquid that has a density of 0.80 0.01g/ml and 0.80-0.01 g/ml is insoluble in cyclohexane. what is the liquid? what is the boiling point of cyclohexane at 600 mm hg?

What remedies are available to the non-breaching party : In the event that a contract is formed and subsequently broken, what remedies are available to the non-breaching party under your state's law?

Explain what is the set of pareto optimal allocations : Amaranda and Bartolo consume only two goods, X and Y. They can trade only with each other and there is no production. The total endowment of good X equals the total endowment of good Y. Amaranda's utility function is U(xA, yA) = max{xA, yA}

Explain the ph values of water and blood : She drinks a lot of water and has consume milk of magnesia(ph value 10.5) before she feels comfortable again. State the pH values of water and blood and whether its acidic or alkaline.

Has the emergence of the internet played a role in retailing : Do wholesaling intermediaries provide any ultimate value to customers, or do they just interfere with the process of retailing? Explain the reasons for your answer. Has the emergence of the Internet played a role in retailing and wholesaling trans..

Find what will be the equilibrium price of good 2 : Colette and Hans both consume the same goods in a pure exchange economy. Colette is originally endowed with 15 units of good 1 and 12 units of good 2. Hans is originally endowed with 97 units of good 1 and 4 units of good 2.

How an organization''s structure and culture might change : Why would an organization choose a corporate level strategy to expand its value-creation activities beyond its core domain? Discuss how an organization's structure and culture might change as the organization begins to enter new domains.

User Account

All Pages