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Business, 19.04.2021 15:40 vale343

Consider a production problem with one factor of production, L; two manufactured goods, x and y; and two people, A and B. Suppose the aggregate endowment of L is 20, and x and y are produced according to the following production functions: xൌfሺL௫ሻ ൌ L௫ and yൌgሺL௬ሻ ൌ 6L௬. At the allocation ൫ሺL௫, L௬ሻ, ሺx஺, y஺ሻ, ሺx஻, y஻ሻ൯ൌ൫ሺ16,4ሻ, ሺ4,12ሻ, ሺ12,12ሻ൯, what is A’s resource footprint?

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