subject
Business, 24.04.2020 16:22 cooper2017

Two consumers, Ron and David, together own 1,000 baseball cards and 5,000 Pokémon cards. Let xR denote the quantity of baseball cards owned by Ron and yR denote the quantity of Pokémon cards owned by Ron. Similarly, let xD denote the quantity of baseball cards owned by David and yD denote the quantity of Pokémon cards owned by David. Suppose, further, that for Ron, MRSᴿ x, y = yR/xR, while for David, MRSᴰ x, y = yD/2xD.
Finally, suppose xR = 800, yR = 800, xD = 200, and yD = 4,200.
Required:
(a) Draw an Edgeworth box that shows the set of feasible allocations in this simple economy.
(b) Show that the current allocation of cards is not economically efficient.
(c) Identify a trade of cards between David and Ron that makes both better off. (Note: There are many possible answers to this problem.)

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 04:30
Peyton taylor drew a map with scale 1 cm to 10 miles. on his map, the distance between silver city and golden canyon is 3.75 cm. what is the actual distance between silver city and golden canyon?
Answers: 3
question
Business, 22.06.2019 05:50
Nichols inc. manufactures remote controls. currently the company uses a plantminuswide rate for allocating manufacturing overhead. the plant manager is considering switchingminusover to abc costing system and has asked the accounting department to identify the primary production activities and their cost drivers which are as follows: activities cost driver allocation rate material handling number of parts $5 per part assembly labor hours $20 per hour inspection time at inspection station $10 per minute the current traditional cost method allocates overhead based on direct manufacturing labor hours using a rate of $20 per labor hour. what are the indirect manufacturing costs per remote control assuming an method is used and a batch of 10 remote controls are produced? the batch requires 100 parts, 5 direct manufacturing labor hours, and 3 minutes of inspection time.
Answers: 2
question
Business, 22.06.2019 10:00
Scenario: you have advised the owner of bond's gym that the best thing to do would be to raise the price of a monthly membership. the owner wants to know what may happen once this price increase goes into effect. what will most likely occur after the price of a monthly membership increases? check all that apply. current members will pay more per month. the quantity demanded for memberships will decrease. the number of available memberships will increase. the owner will make more money. bond's gym will receive more membership applications.
Answers: 1
question
Business, 22.06.2019 18:00
Large public water and sewer companies often become monopolies because they benefit from although the company faces high start-up costs, the firm experiences average production costs as it expands and adds more customers. smaller competitors would experience average costs and would be less
Answers: 1
You know the right answer?
Two consumers, Ron and David, together own 1,000 baseball cards and 5,000 Pokémon cards. Let xR deno...
Questions
question
Biology, 02.03.2021 14:00
question
Mathematics, 02.03.2021 14:00
question
Computers and Technology, 02.03.2021 14:00
question
Arts, 02.03.2021 14:00
Questions on the website: 13722361