Question: 4. Abduls utility function is given by UA = M2 A MB where MA is Abdul's wealth level and MR is Benjamin's wealth level. Benjamin's

4. Abdul’s utility function is given by

UA = M2 A MB where MA is Abdul's wealth level and

UA = M2 A MB where MA is Abdul's wealth level and MR is Benjamin's wealth level. Benjamin's utility function is given by M2 MA B UR = B Suppose M = M = 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 be- tween them. The project is neither pleasant nor unpleasant. What is the minimum pay- ment 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?

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