Consider an economy which has two villages, Fishing and Hunting. A worker can choose one of the two villages. Those in the Fishing village catch fish, while those in the Hunting village catch rabbits, (the best hunters are the worst fishers, and vice versa). The distribution of skills is H = 102F, 0≤H≤ 10 and 0≤F≤5 Suppose that pF = PH = $10

Consider an economy which has two villages, Fishing and Hunting. A worker can choose one of the two villages. Those in the Fishing village catch fish, while those in the Hunting village catch rabbits, (the best hunters are the worst fishers, and vice versa). The distribution of skills is H = 102F, 0≤H≤ 10 and 0≤F≤5 Suppose that pF = PH = $10

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter4: Utility Maximization And Choice

Section: Chapter Questions

Problem 4.12P

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