Find contract curve, Microeconomics

Assignment Help:

Consider two individuals  M and F who must split 20 units of good X and 10 units of good Y. Suppose we can represent M's preference with the utility function

Um =X^2mYm and Fs preference with the utility

Uf = min{Xf, 2Yf}

Where Xm and Xf indicate their X consumption, while Ym and Yf indicate their Y consumption

a) Derive the MRS for M

b) Interpret F's utility function

c) Find and graph the contract curve

d) What is the ratio of the price of X to the Price of Y in competitive equilibrium?

e) To which allocation will M and F trade? Indicate this outcome clearly in your graph


Related Discussions:- Find contract curve

What determines the price elasticity of demand, Question 1: i) Elaborat...

Question 1: i) Elaborate on the different types of price discrimination that a monopolist may use and what are the required preconditions for its application? ii) What dete

Find the elasticity of demand for a quantity, The demand curve for gasoline...

The demand curve for gasoline is P = 200 - 10Q.   a. Find the elasticity of demand for a quantity of 8.  Does this number imply that quantity demanded is sensitive to price chan

Statistics, please can you explainn what "down 0.1 percentage point on the ...

please can you explainn what "down 0.1 percentage point on the quarter means"?

#title., if the marginal production of labor is rising, is the marginal cos...

if the marginal production of labor is rising, is the marginal cost of production rising or falling? Briefly explain

Total, Compare and contrast the different measures of revenue

Compare and contrast the different measures of revenue

Explain supply vs. quantity supplied, Define and explain the following econ...

Define and explain the following economic terms: Economics, Microeconomics & Macroeconomics Positive vs.  Normative Economics Law of Diminishing Marginal Utility Opport

Periodic table, Chemical properties of p block elements

Chemical properties of p block elements

Time series analysis, yt =a+fyt-1 +ut, ut =et +?et-1, where et is independe...

yt =a+fyt-1 +ut, ut =et +?et-1, where et is independent white noise assume the process is stationary. Will OLS generally provide you with consis- tent point estimates of f? Can y

Consumer surplus, on what grounds is consumer surplus criticised?

on what grounds is consumer surplus criticised?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd