Verify if the allocation are feasible & pareto optimal

Assignment Help Finance Basics
Reference no: EM131142347

There are two people (A&B) and two goods (1&2). One production process is available with a production function y2 (y1) = 2y1. The two people are endowed with a total of 60 units of good 1 (we do not know what is the division of wealth). The utility function are uA (x1A, x2A) = x1A x2A and uB (x1B, x2B) = x1B x2B

Verify if the following allocation are feasible & Pareto optimal.

(x1A, x2A) = (12,24) and (x1B, x2B) = (24,24)

(x1A, x2A) = (20,20) and (x1B, x2B) = (20,20)

(x1A, x2A) = (20,40) and (x1B, x2B) = (10,10)

Reference no: EM131142347

Questions Cloud

When does fertilization occur in the mushroom life cycle : What global climatic change gave gymnosperms an advantage over ferns? Where and when does fertilization occur in the mushroom life cycle?
How managers develop buy in from the various groups : "Buy-in" of the strategic direction of the organization is important.- How should managers develop buy-in from the various groups and areas within the organization?
Determine total delay and maximum queue length : Determine total delay, maximum queue length, and the time that the 20th vehicle to arrive waits from its arrival to its departure.
Why would your enthusiasm for rent control wane over time : Why would your enthusiasm for rent control wane over time?
Verify if the allocation are feasible & pareto optimal : There are two people (A&B) and two goods (1&2). One production process is available with a production function y2 (y1) = 2y1. The two people are endowed with a total of 60 units of good 1 (we do not know what is the division of wealth). The utility f..
What is the maximum queue length : When will the queue clear, what is the total delay, and what is the maximum queue length?
Who makes the economic decisions and produce goods : What is produced, and in what quantities? How are these goods produced? For whom are they produced? Who makes the economic decisions?
What is the total delay and the maximum queue length : What is the total delay and the maximum queue length - the parking lot opens and processes vehicles at a rate of 12 per minute.
What name is given to the food-trapping cells of sponges : What name is given to the food-trapping cells of sponges? Which of the following levels of structure encompasses all the others? Which of the following animals does not have a body cavity?

Reviews

Write a Review

Finance Basics Questions & Answers

  Arbitrage trading strategy and cash flows

1. Suppose the (cash) spot price of a 10% coupon Treasury bond is $115 (per $100 par). The bond matures on February 15, 2021; it therefore pays coupons of $5 (per $100 par) every February 15 and August 15. Suppose today is January 15. Find the for..

  What should your funding request include

You are considering acquiring new equipment for the cardiac catheterization lab. You have the option to lease, or to buy the equipment. Your proposal will need to be vetted or cleared through the CFO, who will want all the details and reasoning in..

  The stocks price is currently 2475 its dividend is

hook industries capital structure consists solely of debt and common equity. it can issue debt at rd 11 and its

  Work for centervale apparel

You work for Centervale Apparel, a large clothing manufacturing firm. Centervale Apparel has budgeted $9.7 million for new technology initiatives in the coming year but the project requests currently in the queue for next year total about $15 mill..

  Effect of transactions on various financial ratios

Effect of transactions on various financial ratios. Include the effect that each transaction/event listed here will have on the financial ratio listed opposite it, and provide an explanation for your answer. Use + for increase, - for decrease, and (N..

  Examine the following book-value balance sheet for

fairfield office supplies inc. has a regional chain of office supply stores in the midwest.nbsp fairfield is trying to

  Computation of the effective interest rate on the bank loan

Computation of the effective interest rate on the bank loan and compensating balance requirement which is based on the total amount borrowed

  Stockholders equity

Select any two companies in the same industry (for example, home improvement industry or candy industry). Use the Internet to find the companies' financial statements.

  How much will he have in the account 10 years from today

With no other deposits or withdrawals, how much will he have in the account 10 years from today?

  What should be the stock required of return

The current risk free of return rap is 4 and the market risk premium is 5 percent if the date conifficient associated with firms stock is 2.0 what should be the stock required of return?

  Rate of return on the stock

If you will not be able to attend class that day, please submit it before class by email to [email protected] or at my office, 375A Jacobs (put Assignments under the door if I am not there).1.  BP has come out with a new product. As a result, the fir..

  Why do we focus on cash flows rather than net income

Why do we focus on cash flows rather than net income in capital budgeting? Is operating cash flow the same as EBITDA (Earnings before interest taxes, depreciation and amortization)?

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