Professor Nightsoil's utility function is UN(BN, PN) = BN + 4p1/2N and Dean Interface's utility function is UI(BI, PI) + BI + 2p1/2I.If Nightsoil's initial endowment is 6 bromides and 20 platitudes and if Interface's initial endowment is 2 bromides and 10 platitudes, then at any Pareto efficient allocation where both persons consume positive amounts of both goods,
A) Nightsoil consumes the same ratio of bromides to platitudes as Interface.
B) Interface consumes 6 platitudes.
C) Interface consumes 4 bromides
D) Interface consumes 4 bromides.
E) Interface consumes 2 platitudes.
Correct Answer:
Verified
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