Professor Nightsoil's Utility Function Is U_N(B_N, P_N)=B_N +4p^1/2_N and Dean

question 17

Multiple Choice

Professor Nightsoil's utility function is U_N(B_N, P_N) =B_N +4p^1/2_N and Dean Interface's utility function is U_I(B_I, P_I) = B_I + 2p^1/2_I.If Nightsoil's initial endowment is 3 bromides and 20 platitudes and if Interface's initial endowment is 5 bromides and 15 platitudes, then at any Pareto efficient allocation where both persons consume positive amounts of both goods,

• A)Interface consumes 7 platitudes.
• B)Nightsoil consumes the same ratio of bromides to platitudes as Interface.
• C)Interface consumes 4 bromides.
• D)Interface consumes 4 bromides
• E)Interface consumes 3 platitudes.

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Definitions:

Food Item

An individual substance that is consumed as nourishment or part of a meal.

Butter

A dairy product made from churning milk or cream, separating the solid fats from the liquid buttermilk, and used as a spread or in cooking.

Abundance

The large quantity or amount of something present in a particular area or within a system.

Liver

A vital organ in the body performing multiple functions, including filtering toxins from the blood, metabolizing drugs, and secreting bile.