Solved

Suppose That Paul and David Have Utility Functions U

Question 9

Multiple Choice

Suppose that Paul and David have utility functions U = 3AP + OP and U = AD + 2OD, respectively, where AP and OP are Paul's consumptions of apples and oranges and AD and OD are David's consumptions of apples and oranges.The total supply of apples and oranges to be divided between them is 10 apples and 20 oranges.The "fair" allocations consist of all allocations satisfying


A) AD = AP and OD + OP.
B) 6AP + 2OP is at least 50 and 2AD + 4OD is at least 50.
C) 3AP+ OP is at least 50 and 2AD + 2OD is at least 50.
D) AD + OD is at least 15 and AS + OS is at least 15.
E) 3AP + OP is at least AD + 2OD and AD + 2OD is at least 3AP + OP.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents