Completed quickly and followed instructions given. Grammar, spelling, etc. was all good as well. Thank you so much! Will hire in the future.
1*. Two six-year old twins, Lisa (L) and Malcolm (M), have the following initial endowments of Cookies and Apples: ” = 5, ” = 5, ‘ = 5, ‘ = 5 Let “, “denote Lisa’s consumption and ‘, ‘denote Malcolm’s consumption of Cookies and Apples. Lisa and Malcolm have the following utility functions: “(, ) = ⋅ ‘(, ) = + 2 a) Calculate a competitive equilibrium when Lisa and Malcolm decide to trade with each other. b) Draw an Edgeworth diagram with Lisa in the lower-left corner and Malcolm in the upper-right corner, where consumption of Cookies is measured on the horizontal axis and consumption of Apples is measured on the vertical axis. Identify the initial endowments and draw the indifference curves of Lisa and Malcolm consistent with these endowments. c) Show graphically the Pareto dominating space given the initial endowments and show that the competitive equilibrium is Pareto-efficient. d) Explain the contract curve concept, and depict it graphically for Lisa and Malcolm. Explore how different positions on the contract curve can be achieved by means of redistribution of endowments. (Choose a different endowment point and calculate a new equilibrium. Try to find the equation for the contract curve) e) What are the relations among the different parts of this question and the First- and Second Welfare Theorems?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more