Mutt and Jeff have 8 cups of milk and 8 cups of juice to divide between themselves.

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Mutt and Jeff have 8 cups of milk and 8 cups of juice to divide between themselves. Each has the same utility function given by u(m, j) = max{m, j}, where m is the amount of milk and j is the amount of juice that each has. That is, each of them cares only about the larger of the two amounts of liquid that he has and is indifferent to the liquid of which he has the smaller amount.
Sketch an Edgeworth box for Mutt and Jeff. Use blue ink to show a couple of indifference curves for each. Use red ink to show the locus of Pareto optimal allocations.
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