Characteristics of the efficient allocation: R1=48, R2=60, R3=75; P1=68, P2=80, P3=95; Q1=32, Q2=120, Q3=205.
With the backstop, R3 drops to 70-20=50, R2=40, and R1=32. P1=52, P2=60, P3=70, and Q1=48, Q2=140, Q3=230. Total production via the backstop: 418-357=61.
Site Index |
Zoom |
Admin
URL: https://wilcoxen.maxwell.insightworks.com/pages/2262.html
Peter J Wilcoxen, The Maxwell School, Syracuse University
Revised 05/04/2006
