Jack Spratt's Utility Function Is U(F, L) = L

question 62

True/False

Jack Spratt's utility function is U(F, L) = L. His wife's utility function is U(F, L) = F. If Jack's initial endowment is 100 units of F and 50 units of L and if Jack's wife's initial endowment is 60 units of F and 100 units of L, then in an Edgeworth box for Jack and his wife, an allocation of F and L will be Pareto optimal only if it is at a corner of the box.

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