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Business, 06.10.2019 08:30 hviland4371

Assume that there are only two goods in the economy: video games and water. the total amount of these goods are given, there is no production. the world is inhabited by two people: ann and bob. assume that ann and bob have regular preferences (not necessarily same for ann and bob) over video games and water; and that they have some endowments of these two goods. now a well-intentioned politician says that because water is scarce and it is a necessity, both ann and bob should get half of the overall water resources (and get to consume their respective endowments of video games). is this likely to be an efϐicient policy

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Assume that there are only two goods in the economy: video games and water. the total amount of the...
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