Professor Nightsoils Utility Function Is U N (B N, P

question 42

Multiple Choice

Professor Nightsoils utility function is U N (B N, P N ) = and Dean Interfaces utility function is U I (B I, P I ) = where B N and B I are the number of bromides and P N and P I are the number of platitudes consumed by Nightsoil and Interface respectively. If Nightsoils initial endowment is 4 bromides and 25 platitudes and if Interfaces initial endowment is 2 bromides and 20 platitudes, then at any Pareto efficient allocation in which both consume positive amounts of both goods,

• A) Nightsoil consumes the same ratio of bromides to platitudes as Interface.
• B) Interface consumes 9 platitudes.
• C) Interface consumes 5 bromides.
• D) Interface consumes 3 bromides.
• E) Interface consumes 4 bromides.

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Definitions:

MBCA

Model Business Corporation Act, a recommendation for state law on corporations, providing a template for corporate governance and operations.

Net Asset Test

A financial assessment to determine a company's or individual's net worth by subtracting total liabilities from total assets.

Revised Act

Refers to legislation that has been updated or amended to incorporate changes or new provisions since its original enactment.

Earned Surplus

Profits that a company has retained rather than distributed to shareholders, typically used for reinvestment in the business or to pay down debt.