Reference no: EM13244939
Zaley and Iris have Legos andcrayons. Zaley has 5 Legos and 5 crayons, Iris has 2 Legos and 8 crayons. Zaley's utility function for Legos andcrayons is
uz(lz, cz) = lz · cz
where lz and cz represent quantities of Legos and crayons.Iris' utility function is
ui(li, ci) = li
in other words, Iris gets utility only from Legos and not fromcrayons.
(a) Draw the Edgeworth box for the economy consisting of Zaley andIris and their toys. Indicate the dimensions of the box, identify the initial endowment, and draw the two girls' indifference curves through the initialendowment.
(b) Consider the allocation (lz, cz) = (4, 9), (li, ci) = (3,4).
i. Is it feasible?
ii. Is it Pareto superior to the initial endowment?
iii. Is it Pareto efficient?
(c) In a competitive equilibrium of this economy, which will be higher, the price of Legos or the price of crayons?
How to compare living standards between countries
: Among the problems that hinder growth in developing economies are poor infrastructure, lack of financial institutions and a sound money supply, a low saving rate, poor capital base, and lack of foreign exchange.
|
Important and beneficial roles does government play
: Besides addressing the issue of externalities, what other important and beneficial roles does the government play in a market economy?
|
Explain what is the formula for the limiting reagent
: What is the FORMULA for the limiting reagent. What amount of the excess reagent remains after the reaction is complete. grams
|
Research the americans with disabilities act on the internet
: Research the Americans with Disabilities Act on the Internet.
|
Which will be higher price of legos or the price of crayons
: Zaley and Iris have Legos andcrayons. Zaley has 5 Legos and 5 crayons, Iris has 2 Legos and 8 crayons. Zaley's utility function for Legos andcrayons is uz(lz, cz) = lz · cz where lz and cz represent quantities of Legos and crayons.Iris' utility fun..
|
Explain chlorine gas are mixed with excess water
: For the following reaction, 6.72 grams of chlorine gas are mixed with excess water. The reaction yields 5.13 grams of hydrochloric acid.
|
Calculate the test statistic and the df
: Calculate the test statistic and the df - Write a conclusion, addressing the research question. Your conclusion should include an interpretation of the 95% confidence bound which is given in the above output
|
Socially desirable level of pollution
: There are only two polluting sources in the region, each of which generates 10 units of pollution for a total of 20 units released into the environment. The government determines that emissions must be reduced by 10 units across the region to achieve..
|
How many photoelectrons are emitted
: A beam of blue light of wavelength 500 nm has an intensity of 170 W/m^2, How many photoelectrons are emitted from the potassium plate per second
|