Multiple Choice
Suppose that Paul and David have utility functions U = 4A P + O P and U F= A D + 4O D, respectively, where A P and O P are Paul's consumptions of apples and oranges and A D and O D are David's consumptions of apples and oranges.The total supply of apples and oranges to be divided between them is 20 apples and 12 oranges.The fair allocations consist of all allocations satisfying the following conditions.
A) AD = AP and OD = OP.
B) 8AP + 2OP is at least 92 and 2AD + 8OD is at least 68.
C) 4AP + OP is at least 92 and 2AD + 4OD is at least 68.
D) AD + OD is at least 16 and AS + OS is at least 16.
E) 4AP + OP is at least AD + 4OD and AD + 4OD is at least 4AP + OP.
Correct Answer:

Verified
Correct Answer:
Verified
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