Question

Information Quit P Flag question i Answer Questions based on the following graph. The graph below illustrates a simple exchange economy with two consumers, A and B, with Good X on the horizontal axis and Good Y the vertical. The economy is producing at Point E on the PPF. Point Fillustrates how the output of the economy is allocated to the two consumers, A and B. (Note that the origin point for Consumer A in the Edgeworth exchange box, Point OA, coincides with Point O; and that for Consumer B, Point OB, coincides with Point E.) Consumer A's utility function is UA = XA2/3yA1/3 and Consumer B's utility function is Us = X8 + YB. 13 17 22 E(OB) Finish 4.81 31- Time! O (OA) 6 12 Follow the steps to discuss if allocative efficiency is achieved. Question 9 Not yet answered Marked out of 1.00 With its current production, the MRT of the economy (defined as the amount of Y per X) is

Answer 1

1) 12/20

0.6

2) 3/6

0.6

3) 1.8/6

0.3

4) not enough information

5) true.

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Distributive efficiency require more information.