In Problem 2, Astrid's Utility Function Is U(H_A, C_A) =

question 14

Multiple Choice

In Problem 2, Astrid's utility function is U(H_A, C_A) = H_AC_A. Birger's utility function is min{H_B, C_B}. If Astrid’s initial endowment is no cheese and 13 units of herring and if Birger’s initial endowments are 8 units of cheese and no herring, then where p is a competitive equilibrium price of herring and cheese is the numeraire, it must be that demand equals supply in the herring market. This implies that

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Definitions:

Ultimate Cause

The deeper reason for an occurrence based on evolutionary significance and history, explaining why a feature or behavior exists in an organism.

Altruism

A type of cooperative behavior in which an individual appears to behave in a way that benefits another rather than itself.

Magnetic Field

A region around a magnetic material or a moving electric charge within which the force of magnetism acts.

Honeybees

Social flying insects known for their role in pollination and for producing honey and beeswax from the nectar of flowers.