Homework answers / question archive / Consider an exchange economy of two agents A and B with initial endowments (ZA, YA) (0,1) and (xB, YB) = (1,0), and utility functions UA (ZA, YA) = x?ya ub(XB, YB) = XbYB Give an equilibrium allocation of the economy

Consider an exchange economy of two agents A and B with initial endowments (ZA, YA) (0,1) and (xB, YB) = (1,0), and utility functions UA (ZA, YA) = x?ya ub(XB, YB) = XbYB Give an equilibrium allocation of the economy

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Consider an exchange economy of two agents A and B with initial endowments (ZA, YA) (0,1) and (xB, YB) = (1,0), and utility functions UA (ZA, YA) = x?ya ub(XB, YB) = XbYB Give an equilibrium allocation of the economy. 5. What are the competitive allocations of the economy of two agents with prefer- ences u4(x4, yA) = x4 + y4 uB(xB, 4B) and endowments A = (0,1) eB = (1,0)? = xByB