In Problem 4, Ken's utility function is U(QK, WK) = QKWK and Barbie's utility function is U(QB, WB) = QBWB. If Ken's initial endowment were 4 units of quiche and 6 units of wine and Barbie's endowment were 8 units of quiche and 6 units of wine, then at any Pareto optimal allocation where both persons consume some of each good,
A) Ken would consume 4 units of quiche for every 6 units of wine.
B) Barbie would consume twice as much quiche as Ken.
C) Ken would consume 12 units of quiche for every 12 units of wine that he consumes.
D) Barbie would consume 8 units of quiche for every 6 units of wine that she consumes.
E) None of the above.
Correct Answer:
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