... with x = (y, z) where y is a scalar, z is an n-dimensional consumption vector, and V (·) is a real valued function. The consumption set X = R n+1 + . (a) Show that if V is concave, U is ...
... be a single number v(s) ∈ [0, 1] such that v(s) ◦ M ⊕ (1 − v(s)) ◦ m ∼ [s] where [s] is a certain lottery with prize s, ...= 1 ◦ s. In particular, v(M ) = 1 and v(m) = ...
... with x = (y, z) where y is a scalar, z is an n-dimensional consumption vector, and V (·) is a real valued function. The consumption set X = R n+1 + . (a) Show that if V is concave, U is ...
... 5. Production Economy (25 points) Consider an economy with two firms and two consumers. Firm 1 is entirely owned by consumer 1; it produces good A from input X via the production function a = 2x. ...