Question
Consider an exchange economy with two agents, 1 and 2,
and two goods, X and Y. Each agent's consumption set is in +R2. The endowments of agents 1 and 2 are (10, 1) and (0, 9) respectively. In any commodity bundle, the first entry is the quantity of X, and the second entry is the quantity of Y. If a>c, or a=c and b>d, then Agent 1 strictly prefers bundle (a,b) to (c,d). If b>d, or b=d and a>c, then Agent 2 strictly prefers bundle (a,b) to (c,d). Which of the following allocations is an efficient allocation?Solution
The allocation where Agent 1 gets (10,1) and Agent 2 gets (0,9) is an efficient allocation because it respects their initial endowments and preferences, and any change would make at least one agent worse off.
What percentage of the project cost is covered for design projects under MSME-Innovative for Micro Enterprises? Â
Jay Ltd sells units for Rs 4/bottle. The variable cost for the unit per bottle is Rs.2 and has a fixed operating cost of Rs 4000 and a fixed financing c...
Which of the following is a restriction regarding investments made by banks in securities/instruments issued by NBFCs?
The bonds which are issued outside the jurisdiction of one country and denominated in a currency different from the currency of the countries in which t...
Which committee member was formerly the Chairman of the National Statistical Commission?
In which model of organizational behavior is culture based on status and job titles?
What is the lock-in period for Public Provident Fund?
Where there is increase in Government expenditure, how will it affect Phillips curve?
Given a set of data points: 5, 7, 9, 10, and 12, what is the standard deviation of this data set?
