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Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder
Edition 12ISBN: 978-1133189022Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder
Edition 12ISBN: 978-1133189022 Exercise 27
There are 200 pounds of food on an island that must be allocated between 2 marooned sailors. The utility function of the first sailor is given by 
where F1 is the quantity of food consumed by the first sailor. For the second sailor, utility (as a function of food consumption) is given by
a. If the food is allocated equally between the sailors, how much utility will each receive?
b. How should food be allocated between the sailors to ensure equality of utility?
c. Suppose that the second sailor requires a utility level of at least 5 to remain alive. How should food be allocated so as to maximize the sum of utilities subject to the restraint that the second sailor receives that minimum level of utility?
d. What other criteria might you use to allocate the available food between the sailors?
where F1 is the quantity of food consumed by the first sailor. For the second sailor, utility (as a function of food consumption) is given by
a. If the food is allocated equally between the sailors, how much utility will each receive?
b. How should food be allocated between the sailors to ensure equality of utility?
c. Suppose that the second sailor requires a utility level of at least 5 to remain alive. How should food be allocated so as to maximize the sum of utilities subject to the restraint that the second sailor receives that minimum level of utility?
d. What other criteria might you use to allocate the available food between the sailors?
Explanation
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a) Food is allocated equally between two...
Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder
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