Solved

Professor Nightsoil's Utility Function Is UN(BN, PN)= BN + 4p1/2N

Question 21

Multiple Choice

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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents