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

question 58

Multiple Choice

Mutt's utility function is U(m, j) = max{ 3m, j} and Jeff's utility function is U(m, j) = 2m + j. Mutt is initially endowed with 3 units of milk and 2 units of juice and Jeff is initially endowed with 5 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 of the Edgeworth box but no other edges.
• B) bottom edge of the Edgeworth box but no other edges.
• C) left edge and bottom edge of the Edgeworth box.
• D) right edge of the Edgeworth box but no other edges.
• E) right edge and top edge of the Edgeworth box.

---

Definitions:

Niche Construction

The process in which organisms, through their own behaviors, alter the environment and create their own circumstances.

Social Alliances

Relations or partnerships formed between individuals or groups for mutual benefit or to achieve common goals.

Highly Stereotyped

Referring to actions or behaviors that are very predictable and lack variation.

New Shelters

Structures or locations designated as places of safety or refuge, commonly used to refer to housing solutions for the homeless or victims of disasters.