Mutt's Utility Function Is U(m, J) = Max{ 3m, J}

question 13

Multiple Choice

Mutt's utility function is U(m, j) = max{ 3m, j} and Jeff's utility function is U(m, j) = 4m + j. Mutt is initially endowed with 4 units of milk and 2 units of juice and Jeff is initially endowed with 4 units of milk and 6 units of juice. If we draw an Edgeworth box with milk on the horizontal axis and juice on the vertical axis and if we measure goods for Mutt by the distance from the lower left corner of the box, then the set of Pareto optimal allocations includes the

• A) left edge and bottom edge of the Edgeworth box.
• B) right edge of the Edgeworth box but no other edges.
• C) bottom edge of the Edgeworth box but no other edges.
• D) left edge of the Edgeworth box but no other edges.
• E) right edge and top edge of the Edgeworth box.

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Definitions:

Monosyllables

Words consisting of only one syllable that are often used to express simple or direct responses.

Nonjudgmental Acceptance

The practice of receiving and supporting others without casting judgment based on personal biases, recognizing and respecting individual differences.

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A psychiatric disorder involving sustained low spirits or apathy towards activities, which substantially interferes with daily routines.

Self-Absorption

The excessive preoccupation with oneself and one's own needs, often at the expense of others.