Two Individuals, a and B, Consume Two Goods $x$ And $y$ Together They Have 4 Units Of Goods

question 42

Multiple Choice

Two individuals, A and B, consume two goods, $x$ and $y$ . Together they have 4 units of $x$ and 8 units of $y$ . For Consumer A the $M R S _ { x , y } ^ { A } = { } ^ { 5 x } / 3 y$ and for Consumer B the $M M R S _ { x , y } ^ { B } = 3 x / y$ . Which of the following allocations is an efficient allocation of goods $y$ and $y$ ?

• A) Consumer A has 5 units of \(x\) and 3 units of
• \(y\) , and Consumer B has 3 units of \(x\) and 1 unit of \(y\) .
• B) Consumer A has 3 units of \(x\) and 5 units of
• \(y\) , and Consumer B has 1 unit of\(x\) and 3 units of \(y\) .
• C) Consumer A has 2 units of \(x\) and 6 units of
• \(y\) , and Consumer B has 6 units of\(x\) and 2 units of\(y\) .
• D) Consumer A has 7 units of \(x\) and 2 units of \(y\) , and Consumer B has 1 unit of \(x\) and 6 units of \(y\) .

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Definitions:

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Central ideas or concepts that bring together various disparate elements into a coherent whole.

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