Question: Paul and David take climbing and skiing classes. Classes are always with private instructors, and only one student can attend each class. Paul's utility function
Paul and David take climbing and skiing classes. Classes are always with private instructors, and only one student can attend each class. Paul's utility function is uPCPSPCPSPuPCPSPCPSP where CPCPandSPSP are the number of climbing classes and skiing classes Paul takes, respectively. David's utility function is uDCDSDCDSDuDCDSDCDSD where CDCDandSDSD are the number of climbing classes and skiing classes David takes, respectively. In the next six months, there are only free slots left for each of the two activities.
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We want to draw an Edgeworth box for the allocation of the remaining slots to Paul and David. We represent slots for climbing classes on the horizontal axis and slots for skiing classes on the vertical axis. We let Paul be on the bottomleft corner of the box and David on the topright corner. We want to draw an indifference curve for each individual that goes through the allocationCPSPCPSPand highlight the set of allocations that Pareto dominate it Which of the following would be an accurate representation?
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