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03-21-2008, 02:24 AM
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| Economics Question - Please help!? Consider an economy with one utility-maximizing consumer, Ginny, and one profit-maximizing firm, MyOwnFirm, Inc.; both are price-takers. Ginny is the sole owner and worker of the firm and receives wages and the profits earned by the firm. The firm hires Ginny (that is, she hires herself) to produce the sole consumption good. She makes tradeoffs between the good and leisure hours. True or False: If Ginny produces the consumption bundle that maximizes her satisfaction, then the economy is in general equilibrium. A. Cannot conclude B. True C. False      |
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