Question: Amari and Bailey are two self - regarding traders engaged in exchange over good x and good y . Their utility functions are given by
Amari and Bailey are two selfregarding traders engaged in exchange over good x and good y Their utility functions are given by the following:
Amari:
Bailey:
These utility fuctions imply the following marginal utities:
a point What is Amaris marginal rate of substitution of x for y mrsA What is Baileys marginal rate of substitution of x for y mrsB Hint:
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