Answer to Question #71739 in Microeconomics for oliver griffiths

Question

Robinson's technology for producing coconuts (x) is represented by x equals square root of l, where l is labour, in hours per day. His preferences for coconuts and labour are given by the utility function u left parenthesis l comma space x right parenthesis equals x minus l over 2. Assume Robinson is the only consumer of coconuts, and the owner of the only firm that produces coconuts. Suppose the price of coconuts is set at 1.

The Pareto efficient allocation of labour and coconut is l= and x=

Answer 1

Dear oliver griffiths, your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order