Changes

:::7. Hard Worker and Lazy Man can communicate and negotiate freely.

:::7. Hard Worker and Lazy Man can communicate and negotiate freely.

:::The question is, under these circumstances, what will be the equilibrium level of output, in days worked, for Hard Worker and Lazy Man?  What will be the final wealth of Hard Worker and Lazy Man?  What will be the equilibrium level of output, if there was no redistribution of earnings?  What will the final wealth then be of the two persons?  Now presume that Lazy Man is no longer lazy.  He now only values leisure at 1 unit of value.  Solve this problem under both the conditions of redistribution of wealth and no redistribution of wealth. [[User:Brown25|Brown25]] 16:23, 14 August 2009 (EDT)

:::The question is, under these circumstances, what will be the equilibrium level of output, in days worked, for Hard Worker and Lazy Man?  What will be the final wealth of Hard Worker and Lazy Man?  What will be the equilibrium level of output, if there was no redistribution of earnings?  What will the final wealth then be of the two persons?  Now presume that Lazy Man is no longer lazy.  He now only values leisure at 1 unit of value.  Solve this problem under both the conditions of redistribution of wealth and no redistribution of wealth.

 

:::I will post the answers I got for this problem tonight hopefully. [[User:Brown25|Brown25]] 16:23, 14 August 2009 (EDT)