Recall Bonnie and Clyde from Problem 5

question 13

Multiple Choice

Recall Bonnie and Clyde from Problem 5. Suppose that their total profits are 160H, where H is the number of hours they work per year. Their utility functions are, respectively, U_B(C_B, H) = C_B - 0.01H² and U_C(C_C, H) = C_C - 0.04H², where C_B and C_C are their private goods consumptions and H is the number of hours they work per year. If they find a Pareto optimal choice of hours of work and income distribution, the number of hours they work per year is

• A) 1,700.
• B) 2,400.
• C) 1,600.
• D) 750.
• E) 850.

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A website that allows individuals or businesses to raise funds for various projects or ventures by collecting small amounts of money from a large number of people.

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A loan that is legally structured and documented, typically provided by financial institutions under agreed terms and conditions.

Friends and Family

Personal connections that can provide initial support, funding, or resources for an individual’s endeavors or projects.

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Potential investors or sponsors who may provide financial support to a project, business, or initiative.