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Suppose That Paul and David Have Utility Functions U =

question 23

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Suppose that Paul and David have utility functions U = 4A P + O P and U = A D + 5O D, respectively, where A P and O P are Paul's consumptions of apples and oranges and A D and O D are David's consumptions of apples and orange.The total supply of apples and oranges to be divided between them is 20 apples and 14 oranges.The "fair" allocations consist of all allocations satisfying the following conditions.


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