Re: dse2004

Posted by duck on
URL: http://discussion-forum.276.s1.nabble.com/dse2004-tp5194929p5283516.html

3> 45 degree line would be the set of pareto efficient points. so option "c"
i.e x1=y1 for x1 belongs to [0,1000]

4>again 45 degree line will give the set of competitive eq allocation. so option "c"

5>both are pareto efficient as both points lies on the band which shows pareto efficient allocations.. (hint: draw edgewrth box)

6>option c

refer to the following link to understnd it in a better way>

http://discussion-forum.2150183.n2.nabble.com/how-to-solve-for-competitive-equillibrium-td5269273.html#a5273779