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 3 bromides and 20 platitudes and if Interface's initial endowment is 5 bromides and 15 platitudes, then at any Pareto efficient allocation where both persons consume positive amounts of both goods,
A) Interface consumes 7 platitudes.
B) Nightsoil consumes the same ratio of bromides to platitudes as Interface.
C) Interface consumes 4 bromides.
D) Interface consumes 4 bromides
E) Interface consumes 3 platitudes.
Correct Answer:
Verified
Correct Answer:
Verified
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