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Two Individuals, a and B, Consume Two Goods xx And yy Together They Have 4 Units Of Goods

Question 29

Multiple Choice

Two individuals, A and B, consume two goods, xx and yy . Together they have 4 units of xx and 8 units of yy . For Consumer A the MRSx,yA=5x/3yM R S _ { x , y } ^ { A } = { } ^ { 5 x } / 3 y and for Consumer B the MMRSx,yB=3x/yM M R S _ { x , y } ^ { B } = 3 x / y . Which of the following allocations is an efficient allocation of goods yy and yy ?


A) Consumer A has 5 units of xx and 3 units of
yy , and Consumer B has 3 units of xx and 1 unit of yy .
B) Consumer A has 3 units of xx and 5 units of
yy , and Consumer B has 1 unit of xx and 3 units of yy .
C) Consumer A has 2 units of xx and 6 units of
yy , and Consumer B has 6 units of xx and 2 units of yy .
D) Consumer A has 7 units of xx and 2 units of yy , and Consumer B has 1 unit of xx and 6 units of yy .

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