Please answer the following:
a)Peter and Pip both like apples.Parker has one apple that he can give to either Pip or Peter but he thinks it is fair to give it to the person who gets the most utility from the apple.The decision presents Parker with a problem: since he cannot quantify the utility that Peter and Pip each get from the apple,he cannot compare their utilities and make a fair decision.Is Parker right? Explain.
b)Pat likes apple pies,caramel apples,and apple cake.Consumer choice theory postulates that whichever she chooses,she is maximizing her utility.However Pat finds it difficult to put a number to the level of utility she gets from each and therefore it is not possible to determine whether she is actually at her highest level of utility or not.Is Pat correct? Explain.

Question

Quizplus · Accepted Answer

The Answer of Please answer the following:
a)Peter and Pip both like apples.Parker has one apple that he can give to either Pip or Peter but he thinks it is fair to give it to the person who gets the most utility from the apple.The decision presents Parker with a problem: since he cannot quantify the utility that Peter and Pip each get from the apple,he cannot compare their utilities and make a fair decision.Is Parker right? Explain.
b)Pat likes apple pies,caramel apples,and apple cake.Consumer choice theory postulates that whichever she chooses,she is maximizing her utility.However Pat finds it difficult to put a number to the level of utility she gets from each and therefore it is not possible to determine whether she is actually at her highest level of utility or not.Is Pat correct? Explain.

Please Answer the Following