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

question 27

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 7 bromides and 5 platitudes and if Interface's initial endowment is 8 bromides and 10 platitudes, then at any Pareto efficient allocation where both persons consume positive amounts of both goods,

• A)Interface consumes 1 bromide.
• B)Interface consumes 3 platitudes.
• C)Nightsoil consumes the same ratio of bromides to platitudes as Interface.
• D)Interface consumes 7.50 bromides.
• E)Interface consumes 2 platitudes.

---

Definitions:

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded for a given period.

Euros

The legitimate monetary unit for the eurozone, adopted by 19 of the European Union's 27 member countries.

British Pounds

The currency of the United Kingdom, which is one of the most widely used and oldest currencies in the world.

Foreign Exchange

The exchange of one currency for another or the conversion of one currency into another currency.