# Question: Abdul s utility function is given by UA MA2 MB Where

Abdul’s utility function is given by

UA = MA2/MB

Where MA is Abdul’s wealth level and MB is Benjamin’s wealth level. Benjamin’s utility function is given by

UB = MB2/MA

Suppose MA = MB = 10 initially, and suppose there is a joint project that Abdul and Benjamin can undertake that will generate an additional 10 units of wealth to divide between them. The project is neither pleasant nor unpleasant. What is the minimum payment Abdul must be given to secure his agreement to perform the project? What is the minimum payment Benjamin must be given? Will they perform the project?

UA = MA2/MB

Where MA is Abdul’s wealth level and MB is Benjamin’s wealth level. Benjamin’s utility function is given by

UB = MB2/MA

Suppose MA = MB = 10 initially, and suppose there is a joint project that Abdul and Benjamin can undertake that will generate an additional 10 units of wealth to divide between them. The project is neither pleasant nor unpleasant. What is the minimum payment Abdul must be given to secure his agreement to perform the project? What is the minimum payment Benjamin must be given? Will they perform the project?

## Answer to relevant Questions

Now, suppose Benjamin’s utility function is given by UB = MB2 in Problem 2. And suppose Abdul signs a contract saying that he will donate 20 to a cause he opposes in the event that he receives less than 90 percent of any ...Dalgliesh the detective fancies himself a shrewd judge of human nature. In careful tests it has been discovered that he is right 80 percent of the time when he says that a randomly chosen suspect is lying. Dalgliesh says ...In the fall, Crusoe puts 50 coconuts from his harvest into a cave just before a family of bears goes in to hibernate. As a result, he is unable to get the coco-nuts out before the bears emerge the following spring. Coconuts ...Identify the regions of increasing, constant, and decreasing returns to scale on the isoquant mapshown.Suppose that a firm with the production function Q = min (2K, 3L)Is currently using 6 units of capital and 5 units of labor. What are the marginal products of K and L in this case?Post your question