Hatfield and McCoy Burn with Hatred for Each Other

question 22

Multiple Choice

Hatfield and McCoy burn with hatred for each other.They both consume corn whisky.Hatfield's utility function is U = W_H - W ²_M /16 and McCoy's utility is U = W_M - W²_H /16, where W_H is Hatfield's whisky consumption and W_M is McCoy's whisky consumption, measured in gallons.The sheriff has a total of 66 gallons of confiscated whisky which he could give back to them.For some reason, the sheriff wants them both to be as happy as possible and he wants to treat them equally.The sheriff should give them each

• A)8 gallons and spill 50 gallons in the creek.
• B)33 gallons.
• C)12 gallons and spill the rest in the creek.
• D)4 gallons and spill 58 gallons in the creek.
• E)2 gallons and spill the rest in the creek.

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Definitions:

General Ledger

A comprehensive set of accounts that records all financial transactions of a business, showing assets, liabilities, equity, revenue, and expenses.

Owner Withdrawals

Money or assets taken out of a business by the owner(s) for personal use.

Owner's Equity

The residual interest in the assets of a company after deducting liabilities, representing the ownership interest of shareholders or owners.

Adjusted Trial Balance

A list of all the accounts of a company, showing the balance of each after adjustments have been made for errors, omissions, or accruals.