A small economy has only two consumers, Nick and Minnie. Nick's utility function is U(x, y) . Minnie's utility function is U(x, y) = x + 7y. At a Pareto optimal allocation in which both individuals consume some of each good, how much y does Nick consume?

Question

A small economy has only two consumers, Nick and Minnie. Nick's utility function is U(x, y)  . Minnie's utility function is U(x, y) = x + 7y. At a Pareto optimal allocation in which both individuals consume some of each good, how much y does Nick consume?

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The Answer of A small economy has only two consumers, Nick and Minnie. Nick's utility function is U(x, y)  . Minnie's utility function is U(x, y) = x + 7y. At a Pareto optimal allocation in which both individuals consume some of each good, how much y does Nick consume?

A Small Economy Has Only Two Consumers, Nick and Minnie