Suppose there are only two individuals A and B in the economy with utility function of...
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Suppose there are only two individuals A and B in the economy with utility function of first individual given as U(A) = In(x1) + y12, and utility function of second person given as, U(B) = x2^0.5 + In(y2). Which of the following provides for the equation of contract curve. In(x1) + y12 = x2^0.5 + In(y2) x1/x2 = y1/y2 x2^0.5/2 x1 = y2/y1 yl/y2 = x^20.5/x1 Suppose there are only two individuals A and B in the economy with utility function of first individual given as U(A) = In(x1) + y12, and utility function of second person given as, U(B) = x2^0.5 + In(y2). Which of the following provides for the equation of contract curve. In(x1) + y12 = x2^0.5 + In(y2) x1/x2 = y1/y2 x2^0.5/2 x1 = y2/y1 yl/y2 = x^20.5/x1
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Canation of Contract Gowe MRSAMRSB Here for A utility UCM ... View the full answer
Related Book For
Probability and Statistics
ISBN: 978-0321500465
4th edition
Authors: Morris H. DeGroot, Mark J. Schervish
Posted Date:
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