A small economy has only two consumers, Nick and Minnie.Nick's utility function is U(x, y)= x + 154y^1/2.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)22 B)18 C)121 D)9 E)We can't tell without knowing the initial endowments.

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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)= x + 154y^1/2.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)22 B)18 C)121 D)9 E)We can't tell without knowing the initial endowments.

A Small Economy Has Only Two Consumers, Nick and Minnie