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

question 15

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 6 units of quiche and 9 units of wine and Barbie's endowment were 12 units of quiche and 9 units of wine, then at any Pareto optimal allocation where both persons consume some of each good,

• A)Ken would consume 18 units of quiche for every 18 units of wine that he consumes.
• B)Barbie would consume 12 units of quiche for every 9 units of wine that she consumes.
• C)Ken would consume 6 units of quiche for every 9 units of wine.
• D)Barbie would consume twice as much quiche as Ken.
• E)None of the above.

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Definitions:

Sulphur Dioxide

A colorless gas with a sharp, pungent smell, produced by volcanic eruptions and in various industrial processes, known for its significant environmental and health impacts.

Acid Deposition

The falling of acids and acid-forming compounds from the atmosphere to the Earth's surface, often as rain, snow, or dust, with harmful environmental effects.

Methylmercury

A highly toxic form of mercury that bioaccumulates in fish and shellfish, posing health risks to humans and wildlife.

Nutrient Uptake

The process by which organisms absorb nutrients from the environment to support their growth and metabolism.