Question: please help explain which one it is: Suppose that Paul has the following utility function: U=4AP+OPU=4AP+OP Suppose that David has the following utility function: U=AD+5ODU=AD+5OD
please help explain which one it is:
Suppose that Paul has the following utility function:
U=4AP+OPU=4AP+OP
Suppose that David has the following utility function:
U=AD+5ODU=AD+5OD
where A_(P) and O_(P) are Pauls consumptions of apples and oranges and A_(D) and O_(D) are Davids consumptions of apples and oranges.
The total supply of apples and oranges to be divided between them is 16 apples and 16 oranges.
The fair allocations consist of all allocations satisfying
options:
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| 4*A_(P)+O_(P) is at least 80 and 2*A_(D)+5*O_(D) is at least 96. |
|
| A_(D)+O_(D) is at least 16 and A_(P)+O_(D) is at least 16. |
|
| 8*A_(P) + 2*O_(P) is at least 80 and 2*A_(D) + 10*O_(D) is at least 96. |
|
| A_(D) =A_(P) and O_(D) = O_(P) |
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