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Title: The above figure depicts the Edgeworth box for two consumers, Al and Bruce. Explain why point ... Post by: Mairoon on Oct 18, 2017 The above figure depicts the Edgeworth box for two consumers, Al and Bruce. Explain why point "a" cannot be a competitive equilibrium.
Title: Re: The above figure depicts the Edgeworth box for two consumers, Al and Bruce. Explain why point ... Post by: Tyforumca on Oct 18, 2017 Point "a" cannot be a competitive equilibrium because at point "a", Al and Bruce each have a different marginal rate of substitution. Since they both face the same prices in a competitive market, at least one of them is not in equilibrium.
Title: Re: The above figure depicts the Edgeworth box for two consumers, Al and Bruce. Explain why point ... Post by: Mairoon on Aug 14, 2018 Thanks to all of you, I passed my course
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