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Practical Management Science

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter10: Introduction To Simulation Modeling

Section: Chapter Questions

Problem 46P

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Consider a two-good two agent economy with the following endowments and utility functions:
(e, e) = (15, 0), (ef, e) = (0, 5)
ut (x1,X2) = In x1 + 2 ln x2
u (x1, x2) = 3 ln x1 + In x2.
Find the equilibrium price of good 1 in this economy. Use the normalization p1 + p2 = 1. (Report t

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