This homework should be review of efficiency concepts you learned in intermediate microeconomics. It is there as a refresher and to make sure that you are functionally able to do the homework.
There are three worksheets. You must do each of them. The first worksheet asks for you to input your NetID and then select your alias. If you get all the responses correct (which is the expectation) then on the third worksheet you will get a code to use to get credit for the homework. There is a link given. Follow the instructions.
If you are having trouble with any of the questions, you can make a query as a comment to this post. If you've already created your Blogger identity using your alias, you can ask your question that way after you've logged in. Otherwise, anonymous comments are accepted.
In the General Equilibrium section, a question asks for a Pareto Improvement. How can we improve it the initial allocation is already on the contract curve?
ReplyDeleteSorry to be a little slow to respond. With gmail doing its new thing, I didn't see the alert message till just a few minutes ago.
ReplyDeleteThe answer to the theoretical question you pose, is that there can't be Pareto Improvement in that case. But the initial allocation is not on the contract curve, though I admit for your parameter values it is quite close to the contract curve. You can tell this because in your case B's MRS is slightly larger than A's. This means that if you took a small amount of Good X away from A and gave that amount to B and in exchange gave A an amount of Good Y equal to p*(amount of good X traded) where p is some exchange ratio between the two MRS, that would make them both better off.
I have completed the excel homework and have obtained the key; however, when I click the form to enter the key it says the file I have requested does not exist.
ReplyDeleteTry clicking the link and see if that works. If it doesn't, try logging out of your campus email account first and then clicking the link.
ReplyDelete