Multiple Choice
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 8 units of quiche and 11 units of wine and Barbie's endowment were 16 units of quiche and 11 units of wine, then at any Pareto optimal allocation where both persons consume some of each good,
A) Barbie would consume twice as much quiche as Ken.
B) Ken would consume 8 units of quiche for every 11 units of wine.
C) Ken would consume 24 units of quiche for every 22 units of wine that he consumes.
D) Barbie would consume 16 units of quiche for every 11 units of wine that she consumes.
E) None of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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