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Suppose That Paul and David Have Utility Functions U =

Question 20

Multiple Choice

Suppose that Paul and David have utility functions U = 5AP + OP and U = AD + 3OD, respectively, where AP and OP are Paul's consumptions of apples and oranges and AD and OD are David's consumptions of apples and oranges.The total supply of apples and oranges to be divided between them is 14 apples and 14 oranges.The "fair" allocations consist of all allocations satisfying


A) 10AP + 2OP is at least 84 and 2AD + 6OD is at least 56.
B) 5AP + OP is at least 84 and 2AD + 3OD is at least 56.
C) AD + OD is at least 14 and AS + OS is at least 14.
D) AD + AP and OD + OP.
E) 5AP + OP is at least AD + 3OD and AD + 3OD is at least 5AP + OP.

Correct Answer:

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