Multiple Choice
Professor Nightsoils utility function is U N (B N, P N) = BN + 4P1/2N and Dean Interfaces utility function is U I (B I, P I) = BI + 2P1/2I, where B N and B I are the number of bromides and P N and P I are the number of platitudes consumed by Nightsoil and Interface respectively.If Nightsoils initial endowment is 5 bromides and 20 platitudes and if Interfaces initial endowment is 3 bromides and 20 platitudes, then at any Pareto efficient allocation in which both consume positive amounts of both goods,
A) Nightsoil consumes the same ratio of bromides to platitudes as Interface.
B) Interface consumes 8 platitudes.
C) Interface consumes 4 bromides.
D) Interface consumes 4 bromides"
E) Interface consumes 4 bromides
Correct Answer:

Verified
Correct Answer:
Verified
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