Consider a two-good two-consumer exchange economy where uā = X1Yā and uā = X2Y2, endowment of person 1 = (3, 4) and endowment of person 2 = (2, 2). Setting the price of good Y to one (py = 1), what is the price of good X in the competitive equilibrium? 01 O 6/5 O 3/5 O 3/2 Novt > Question 13 A profit-maximizing monopolist faces a downward sloping demand curve that has a constant elasticity of -4. The firm finds it optimal to charge a price of $20 for its output. What is its marginal cost at this level of output? O $15 O $30 O $25 O $5
