Multiple Choice
Mutt's utility function is U(m, j) = max{3m, j} and Jeff's utility function is U(m, j) = 3m + j.Mutt is initially endowed with 6 units of milk and 2 units of juice and Jeff is initially endowed with 2 units of milk and 6 units of juice.If we draw an Edgeworth box with milk on the horizontal axis and juice on the vertical axis and if we measure goods for Mutt by the distance from the lower left corner of the box, then the set of Pareto optimal allocations includes the
A) bottom edge of the Edgeworth box but no other edges.
B) left edge of the Edgeworth box but no other edges.
C) right edge of the Edgeworth box but no other edges.
D) left edge and bottom edge of the Edgeworth box.
E) right edge and top edge of the Edgeworth box.
Correct Answer:

Verified
Correct Answer:
Verified
Q43: The second welfare theorem of economics states
Q44: Jack Spratt's utility function is U(F, L)=
Q45: Astrid's utility function is U(H<sub>A</sub>, C<sub>A</sub>)= H<sub>A</sub>C<sub>A</sub>.Birger's
Q46: An economy has two people, Charlie and
Q47: Jack Spratt's utility function is U(F, L)=
Q49: An economy has two people, Charlie and
Q50: Xavier and Yvette are the only two
Q51: If two people have identical homothetic preferences
Q52: Abduls utility is U(X A, Y A)=
Q53: Kens utility function is U(Q K, W