Ken's Utility Function Is U(Q_K, W_K)=Q_KW_K and Barbie's Utility Function

question 10

Multiple Choice

Ken's utility function is U(Q_K, W_K) =Q_KW_K and Barbie's utility function is U(Q_B, W_B) =Q_BW_B.If Ken's initial endowment were 4 units of quiche and 6 units of wine and Barbie's endowment were 8 units of quiche and 6 units of wine, then at any Pareto optimal allocation where both persons consume some of each good,

• A)Ken would consume 4 units of quiche for every 6 units of wine.
• B)Barbie would consume twice as much quiche as Ken.
• C)Ken would consume 12 units of quiche for every 12 units of wine that he consumes.
• D)Barbie would consume 8 units of quiche for every 6 units of wine that she consumes.
• E)None of the above.

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Definitions:

IAS 34

International Accounting Standard 34, providing guidelines on interim financial reporting to ensure timely and reliable disclosures.

Annual Maintenance

Routine or regular maintenance carried out on equipment or facilities to ensure their efficient operation and to prevent breakdown or failure.

Intercompany Bond Holdings

Intercompany Bond Holdings pertain to bonds owned by one entity within a larger corporate group that were issued by another entity within the same group.

Allocating Gain

The process of distributing profit among different accounts or investments.