Kens utility function is U(QK, WK) = QK WK and Barbies utility function is U(QB, WB)...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Kens utility function is U(QK, WK) = QK WK and Barbies utility function is U(QB, WB) = QB WB. If Kens initial endowment were 5 units of quiche and 9 units of wine and Barbies endowment were 10 units of quiche and 9 units of wine, then at any Pareto optimal allocation where both persons consumed some of each good, a. Ken would consume 15 units of quiche for every 18 units of wine that he consumed. b. Barbie would consume twice as much quiche as Ken. c. Ken would consume 5 units of quiche for every 9 units of wine that he consumed. d. Barbie would consume 10 units of quiche for every 9 units of wine that she consumed. e. None of the above. Show your work. Kens utility function is U(QK, WK) = QK WK and Barbies utility function is U(QB, WB) = QB WB. If Kens initial endowment were 5 units of quiche and 9 units of wine and Barbies endowment were 10 units of quiche and 9 units of wine, then at any Pareto optimal allocation where both persons consumed some of each good, a. Ken would consume 15 units of quiche for every 18 units of wine that he consumed. b. Barbie would consume twice as much quiche as Ken. c. Ken would consume 5 units of quiche for every 9 units of wine that he consumed. d. Barbie would consume 10 units of quiche for every 9 units of wine that she consumed. e. None of the above. Show your work.
Expert Answer:
Answer rating: 100% (QA)
SOLUTION Lets start by analyzing the utility functions of Ken and Barbie UQKWK QK Wx UQBWB QB WB From the Pareto optimality condition we know that the ... View the full answer
Related Book For
Posted Date:
Students also viewed these human resource management questions
-
A little exchange economy has just two consumers, named Kenand Barbie, and two commodities, quiche and wine. Kens initial endowment is 3 units of quiche and 2 units of wine. Barbies initial endowment...
-
Morris Zapp and Philip Swallow consume wine and books. Morris has an initial endowment of 60 books and 10 bottles of wine. Philip has an initial endowment of 20 books and 30 bottles of wine. They...
-
TCP: the client sends only 1 message to the server hello from TCP Client and the server responds with the uppercase message. Update the program / make a simple chat program so that The client can...
-
Sierra Inc. consists of a semiconductor division and a process-control division, each of which operates as an independent profit center. The semiconductor division employs craftsmen who produce two...
-
Find the critical points of . Assume a is a constant. 1 (x) = -x - ax 5
-
The Anchor Glass Container Corporation and its parent company, Consumers Packaging, Inc. (CPI), entered into a series of agreements with Encore Glass, Inc., to supply glass containers of a specific...
-
Suppose your elasticity of demand for your parking lot spaces is 0.5, and price is $20 per day. If your MC is zero, and your capacity at 9 A.M. is 96%full over the last month, are you optimizing?
-
Matt has worked as an electrician for 24 years with the same company and is about to retire. He has a final-earnings pension plan. His pension benefit will be 1% per year based on the average of his...
-
Bonnie First supervises respiratory therapists at a large community hospital. One day her manager said, Your department used too much overtime again last week. I want you to propose a solution to...
-
The United States Mexico and Canada Agreement (USMCA, which is also formerly known as North American Free Trade Agreement or NAFTA), encourage the U.S. businesses to expand into partner markets of...
-
Your goal is to have no tuition debt when you complete your degree at Moody. You have just finished adding up all your tuition income for an academic year, which is $6000. You know that tuition is...
-
Shopping with Interest Maybe you're thinking there's no way you would ever fall into a huge cycle of credit card debt, but paying a little bit of interest won't be so bad. You might be right, or...
-
In the sphere of accounting for investments in subsidiaries, what special issues or challenges have you encountered or anticipate when preparing journal entries and financial statements for an...
-
Your grandmother just gave you $6,000 You'd like to see what it might grow to if you invest it a. Calculate the future value of $6,000, given that it will be invested for 5 years at an annual...
-
Do you have to join a union to work in production accounting in the entertainment industry?
-
Case Study: Chocolat Stella Bernrains ERP Implementation Presentation BUS 103 Instructions: This case is not listed in any case study directories. It is an original case. The case study logically...
-
Question 6.10 Current and deferred tax worksheets and tax entries From the hip Ltd?s statement of profit or loss for the year ended 30 June 2007 and extracts from its statements of financial position...
-
Assuming that the Capital Asset Pricing Model is valid, complete the following table. In this table p0 is the current price of asset I and Ep1 is the expected price of asset i in the next period.
-
Joe Grad has just arrived at the big U. He has a fellowship that covers his tuition and the rent on an apartment. In order to get by, Joe has become a grader in intermediate price theory, earning...
-
Consider a competitive industry with a large number of firms, all of which have identical cost functions c(y) = y2 + 1 for y > 0 and c(0) = 0. Suppose that initially the demand curve for this...
-
What other questions and objections can you anticipate? If you revised the message, which questions and objections would you want to address? Are there any you would choose not to address? If so, why?
-
What are the advantages and disadvantages of the following other options: making an announcement on the companys internal website, sending a memo to each employee, sending an email to each employee,...
-
As consumers increasingly interact with one another in digital form, what are the ramifications for real-world human relationships?
Study smarter with the SolutionInn App