Professor Nightsoil's utility function is UN(BN, PN) = BN +4p1/2N and Dean Interface's utility function is UI(BI, PI) =BI + p1/2I.If Nightsoil's initial endowment is 5 bromides and 10 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) Interface consumes 4 platitudes.
B) Nightsoil consumes the same ratio of bromides to platitudes as Interface.
C) Interface consumes 3.50 bromides.
D) Interface consumes 2 bromides.
E) Interface consumes 2 platitudes.
Correct Answer:
Verified
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