Allocation 1 surplus:
Xavier surplus=(4 apple * 1$) + (3 bananas * 2$). = 4 + 6 = 10$
Yolanda surplus = ( 2 apples * 2$) + (2 bananas * 4$) = 4+8
= 12$
Zoe surplus = (3 bananas *1$)+(4 apples*2$) = 3+8 = 11$
Total surplus = 10+12+11= 33$.
Allocation 2 surplus:
Xavier surplus=(3 apple * 1$) + (4 bananas * 2$). = 3 + 8 = 11$
Yolanda surplus = ( 2 apples * 2$) + (2 bananas * 4$) = 4+8
= 12$
Zoe surplus = (4 bananas *1$)+(3 apples*2$) = 4+6= 10$
Total surplus =11+12+10 = 33$
Allocation 3 surplus:
Both Xavier and Zoe has 0 surplus.
Yolanda surplus = (9 bananas *4$)+(9 apples*2$) =36+18 = 54$
Total surplus =0+0+54 = 54$.
Hence allocation 3 is the best, Allocation 1 and 2 are tied. This is because in the above calculation, allocation 1 surplus and allocation 2 surplus are same even though each surplus of both Zoe and Xavier are different in allocation 1 and 2. In allocation 3, even though both Xavier and Zoe has 0 surplus, surplus of Yolanda makes the total surplus of allocation 3 more than the total allocation surplus of both 1 and 2.
please explain why Suppose the Xavier values each apple at $1 and each banana at $2;...
please explain why
Suppose the Xavier values each apple at $1 and each banana at $2; Yolanda values each apple at $2 and each banana at $4; and Zoe value each apple at $2 and each banana at $1. Consider the following three allocations: Allocation 1: Xavier has 4 apples and 3 bananas, Yolanda has 2 apples and 2 bananas, and Zoe has 3 bananas and 4 apples. Allocation 2: Xavier has 3 apples and 4 bananas, Yolanda has 2...
please explain why
Suppose the Xavier values each apple at $1 and each banana at $2; Yolanda values each apple at $2 and each banana at $4; and Zoe value each apple at $2 and each banana at $1. Consider the following three allocations: Allocation 1: Xavier has 4 apples and 3 bananas, Yolanda has 2 apples and 2 bananas, and Zoe has 3 bananas and 4 apples. Allocation 2: Xavier has 3 apples and 4 bananas, Yolanda has 2...
please be careful z.
Suppose the Xavier values each apple at $1 and each banana at $2; Yolanda values each apple at $2 and each banana at $4; and Zoe value each apple at $2 and each banana at $1. Consider the following three allocations: Allocation 1: Xavier has 4 apples and 3 bananas, Yolanda has 2 apples and 2 bananas, and Zoe has 3 bananas and 4 apples. Allocation 2: Xavier has 3 apples and 4 bananas, Yolanda has...
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Nominal Cost Help; Both questions, please.
Refer to table 1. Consider a basket of goods that includes 10 apples, 5 bananas, 3 kiwis, and 1 pineapple. At the prices given in the table, what is the nominal cost of the basket of goods in 2004? Table 1 ear apple baaa kiwi pineapple 2003 $4 $2 $5 $6 2004 $3 $2 $6 $8 Select one: O a. $80 o b. $66 O c. $73 O d. $40 Refer to table 1...
Suppose Home has 300 units of labor. It can produce two goods,
apples and bananas. In Home a worker can produce 3 apples or 5
bananas.
a. Graph Home's PPF, with apples in the horizontal axis
. b. What is the opportunity cost of apples?
c. In the absence of trade – when Home is isolated ‐ what would
the relative price be?
d. Now suppose there is another country, Foreign, with a labor
force of 200. In Foreign a...
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e STEP: 2 of 3 The nation of Ectenia apple orchards, which sell apples at the world price of $2 per apple. The following equations describe the production function and the marginal product of labor in each orchard Q- 1001-L2 MPL -100-2L where Q is the number of apples produced in a day, L is the number of workers, and MPL is the marginal product of labor. Suppose the world price of apples doubles to $4 per apple. What is...
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