Suppose That Mutt's Utility Function Is U(m, J)= Max{4m

question 5

Multiple Choice

Suppose that Mutt's utility function is U(m, j) = max{4m, j} and Jeff's utility function is U(m, j) = 2m + j.Mutt is initially endowed with 2 units of milk and 2 units of juice, and Jeff is initially endowed with 6 units of milk and 6 units of juice.If we draw an Edgeworth box with milk on the horizontal axis and juice on the vertical axis and if we measure goods for Mutt by the distance from the lower left corner of the box, then the set of Pareto optimal allocations includes the

• A)left edge of the Edgeworth box but no other edges.
• B)right edge of the Edgeworth box but no other edges.
• C)left edge and bottom edge of the Edgeworth box.
• D)bottom edge of the Edgeworth box but no other edges.
• E)right edge and top edge of the Edgeworth box.

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A type of business entity owned and operated by a single individual, where there is no legal distinction between the owner and the business.

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A person's net worth comprised of assets, cash, and investments minus any liabilities.

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