Multiple Choice
A small economy has only two consumers, Nick and Minnie.Nick's utility function is U(x, y) = x + 154y1/2.Minnie's utility function is U(x, y) = x + 7y.At a Pareto optimal allocation in which both individuals consume some of each good, how much y does Nick consume?
A) 22
B) 18
C) 121
D) 9
E) We can't tell without knowing the initial endowments.
Correct Answer:
Verified
Correct Answer:
Verified
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