Monday

September 22, 2014

September 22, 2014

Posted by **Brett** on Thursday, February 19, 2009 at 10:49am.

- college Econ -
**economyst**, Friday, February 20, 2009 at 9:24amSo for Fred, Z and B are efficiently allocated when Z=B. Further, there are no diminishing returns. That is MU at Z0=B0 is the same as MU at Z1=B1. For Ethel, like Fred, there are no diminishing returns. However, efficient allocation calls for 2Z=B.

So, it may not be equitable, but one efficient allocation is to give everything to Ethel.

**Answer this Question**

**Related Questions**

Economics - Suppose Fred and Ethel need to divide 20 pizza slices and 10 cans of...

economics - Suppose 15 peaches and 20 oranges need to be divided between fred ...

ECON - Suppose Fred has a utility function of the form U = X ½ Y ½ . Fred has an...

Economics - 2. Suppose Fred has a utility function of the form U = X ½ Y ½ . ...

ECONOMICS - Sorry, the last Question didn't post Suppose Fred has a utility ...

Micro econ - 1: Suppose John had a utility function of U=X^2/3Y^1/3 . Derive ...

Finite Math - Bill and Fred are betting on the outcome when two fair dice are ...

reading - Both Greta and Fred were on the bus that arrived in Pittsburgh. Fred ...

Math - Fred decides that 12+40=62 is NOT a true equation.Is Fred correct?Explain...

penn foster Main ideas - Both Greta and Fred were on the bus that arrived in ...