Alice (A) and Bob (B) have an endowment of goods 1 and 2, with Alice's endowment being (wª, wg) = (1, 2) and Bob's endowment equals (wf, w}) = (1,3). Alice's utility is given by u4 (xf, x£) = 2 In æf...


Alice (A) and Bob (B) have an endowment of goods 1 and 2, with Alice's endowment being (wª, wg) = (1, 2) and Bob's endowment equals<br>(wf, w}) = (1,3). Alice's utility is given by u4 (xf, x£) = 2 In æf + In xf', while Bob's utility is ug(x², x}) = ln æf + 2 ln æ.<br>Which of the following consumption bundles of consumer A belong to the contract curve?<br>Select one:<br>O a. af = 1, xg = 1<br>O b. rf = 2, x = 1<br>O c. rf = 1, xg = 3<br>O d. rf = 2, xg = 4<br>

Extracted text: Alice (A) and Bob (B) have an endowment of goods 1 and 2, with Alice's endowment being (wª, wg) = (1, 2) and Bob's endowment equals (wf, w}) = (1,3). Alice's utility is given by u4 (xf, x£) = 2 In æf + In xf', while Bob's utility is ug(x², x}) = ln æf + 2 ln æ. Which of the following consumption bundles of consumer A belong to the contract curve? Select one: O a. af = 1, xg = 1 O b. rf = 2, x = 1 O c. rf = 1, xg = 3 O d. rf = 2, xg = 4

Jun 11, 2022
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