Recall Bonnie and Clyde from Problem 5

question 3

Multiple Choice

Recall Bonnie and Clyde from Problem 5. Suppose that their total profits are 140H, where H is the number of hours they work per year. Their utility functions are, respectively, U_B(C_B, H) = C_B - 0.03H² and U_C(C_C, H) = C_C - 0.02H², 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) 1,400.
• B) 2,100.
• C) 1,500.
• D) 650.
• E) 750.

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Definitions:

Sensory Receptor

Cell or cell component that responds to a specific stimulus, such as temperature or light.

Detects

The process of identifying or discovering something through observation or the use of specific scientific equipment.

Light

Electromagnetic radiation that is visible to the human eye, fundamental for photosynthesis and perception.

Octopus

A marine animal known for its bulbous head, large eyes, and eight distinctive arms; celebrated for its intelligence and ability to change color and shape.