Consider the same set up as in Question 1. Which of the following consumption bundles of consumer A belong to the contract curve? Select one: O a. xf = 1, x = 1 O b. rf = 2, x = 1 O = 3 c. xf = 1, x O...

Extracted text: Consider the same set up as in Question 1. Which of the following consumption bundles of consumer A belong to the contract curve? Select one: O a. xf = 1, x = 1 O b. rf = 2, x = 1 O = 3 c. xf = 1, x O d. af = 2, x = 4


Extracted text: Alice (A) and Bob (B) have an endowment of goods 1 and 2, with Alice's endowment being (wf, w) = (1,2) and Bob's endowment equals (wf, w) = (1,3). Alice's utility is given by ua (xf, xf) = 2 In af + In xf , while Bob's utility is up(af, x?) = ln af + 2 ln a.