Recall Lucy and Melvin from Problem 6

question 11

Multiple Choice

Recall Lucy and Melvin from Problem 6. Lucy's utility function is 2X_L + G and Melvin's utility function is X_MG, where G is their expenditures on the public goods they share in their apartment and where X_L and X_M are their respective private consumption expenditures. The total amount they have to spend on private goods and public goods is $33,000. They agree on a Pareto optimal pattern of expenditures in which the amount that is spent on Lucy's private consumption is $9,000. How much do they spend on public goods?

• A) $8,550
• B) $4,000
• C) $8,000
• D) $16,000
• E) There is not enough information here to be able to determine the answer.

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Definitions:

Nerve Tissue

Specialized tissue that makes up the nervous system, comprising neurons and supporting cells, functioning to transmit signals between different parts of the body.

Columnar Epithelium

Type of epithelial tissue with cylindrical cells.

Kidney Tubules

Microscopic tubes in the kidneys where urine is formed through the processes of filtration, reabsorption, and secretion.

Desmosome

A type of intercellular junction that anchors cells together in tissues that are subject to considerable stretching.