Question: 2. Please help me with the image question. 2. Shella, Dorian and Thom live in the same house, and are considering growing vegetables in their

2. Please help me with the image question.

2. Please help me with the image question. 2. Shella, Dorian and

2. Shella, Dorian and Thom live in the same house, and are considering growing vegetables in their garden. If they Spend an amount w in total for the seeds, dirt, etc..., the gross utility of Shella and Dorian is 11,3093) = uD(cc) = a: x2 each whereas Thom gets a gross utility uT(a:) = 2 :3. Let tai = S,D,T be the contribution of each member respectively. For this exercise, round off your nal results at two decimal places. (a) Find the Pareto efcient amount of money to spend in the garden. Call it x\". (b) Individually, how much does each want to be spent on the garden if the cost is split evenly? Call the amounts 3:11, 3171) and (L's. (c) Does Thorn prefer 37* or $3 to be spent under the even split rule? If a vote between the three is cast about spending 3:\" or :33, which amount will be chosen? (d) Thom has heard about Lindhal, who proposed personalized contributions. Let TT, T3 and TD be the individual share of the expense each has to pay. Those shares are determined by equating the marginal utility (with respect to 3:) of each with their respective share. Under this rule, nd the individual shares and the spending amount :31\" (don't forget shares add up to 1). Compare your answer with m'\". (e) In practice, the rule proposed by Lindhal requires each agent to report their preferences (i.e. their utility function), so that the contributions can be computed for each agent. Is it easier to implement 55* with an even split rule or xL with the Lindhal rule? Explain

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