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Nesterboy [21]
4 years ago
6

Two consumers, A and B, consume books and wine. Consumer A's initial endowment is (60, is, has has 60 books and 10 bottles of wi

ne. Consumer endowment is (20,30). They have no other assets, and make no trades with anyone other than each other. For A, a book and a bottle of wine are perfect substitutes: her utility function is MA (zb, aw) acb zur, where arb is the number of books she consumes, and zu, is the number of bottle of wines she consumes. Consumer B's preferences are given by the utility function uB (Cb, acu) zbau (1) Draw an Edgeworth box with B's consumption measured from the upper right- hand corner of the box. On this diagram, mark the initial endowment, and label it e. Use red ink to draw A's indifference curve that passes through her initial endowment. use blue ink to draw B's indifference curve that passes through her initial endowment 2) At any Pareto optimal allocation, where both people consume some of each good it must be that their marginal rates of substitution are equal. Why? What are A and B's marginal rates of substitution? What is the equation of the contract curve? Use black ink to draw the contract curve on the diagram (3) In a competitive equilibrium, A will consume some books and wine. But in order for her to do so, what must the ratio of prices be? What is the competitive equilibrium of this exchange economy?

Business
1 answer:
Dmitriy789 [7]4 years ago
7 0

Answer:

See full answer attached for your perusal.

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Answer:

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ad relevance.

Explanation:

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3 years ago
During the current year, Rayon Corporation disposed of two different assets. On January 1, prior to their disposal, the accounts
julsineya [31]

Answer and Explanation:

The journal entries are shown below:

1) Journal entry

On Jan 2

No journal entry is required  

On Jan 2

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2) Journal entry

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On Jan 2  

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3 years ago
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Kamila [148]

Answer:

False

Explanation:

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Strength

Weakness

Opportunities

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Strength and weaknesses are the internal factors not external ones, strength and weakness comes from inside of the organisation. Any organisation capability to serve the customers well, having red hot selling products, creative employees can be its strength. If these elements are not performing well, they can become the weakness as well, therefore, SW is related with the internal environment of the organisation.

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sveticcg [70]

Answer:

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