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 7 bromides and 5 platitudes and if Interface's initial endowment is 8 bromides and 10 platitudes, then at any Pareto efficient allocation where both persons consume positive amounts of both goods,
A) Interface consumes 1 bromide.
B) Interface consumes 3 platitudes.
C) Nightsoil consumes the same ratio of bromides to platitudes as Interface.
D) Interface consumes 7.50 bromides.
E) Interface consumes 2 platitudes.
Correct Answer:
Verified
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