Question: Please, use the production function! Consider an economy with two firms and two countries. Firm 1 is entirely owned by country 1 . It produces

Please, use the production function!
Consider an economy with two firms and two countries. Firm 1 is entirely owned by country 1 . It produces Provasic from Soma via the production function f1(x)=2x, where x is the input of Soma. Firm 2 is entirely owned by country 2. It produces Brawndo from Soma via the production function f2(y)=3y where y is the input of Soma. Each country is endowed with 10 units of Soma. Country 1's utility function is U1(x1,x2)=x10.4x20.6 where x1 is the quantity of Provasic and x2 is the quantity of Brawndo consumed. Country 2 's utility function is U2(y1,y2)=y10.5y20.5 where y1 is the quantity of Provasic and y2 is the quantity of Brawndo consumed. You may assume the utility functions are quasi-concave. 1. What kind of returns to scale does the Provasic production technology exhibit? 2. What kind of returns to scale does the Brawndo production technology exhibit? 3. Treating the price of Soma as a numeraire, what are the Walrasian equilibrium prices? 4. In the Walrasian equilibrium does any country export Soma
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