Multiple Choice
Professor Nightsoil's utility function is UN(BN, PN) = BN + 4p1/2N and Dean Interface's utility function is UI(BI, PI) =BI +2p1/2I.If Nightsoil's initial endowment is 4 bromides and 15 platitudes and if Interface's initial endowment is 7 bromides and 15 platitudes, then at any Pareto efficient allocation where both persons consume positive amounts of both goods,
A) Interface consumes 3 bromides.
B) Interface consumes 5.50 bromides.
C) Nightsoil consumes the same ratio of bromides to platitudes as Interface.
D) Interface consumes 6 platitudes.
E) Interface consumes 3 platitudes.
Correct Answer:
Verified
Correct Answer:
Verified
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