Lucy's Utility Function Is 2X_L + G and Melvin's Utility

question 11

Multiple Choice

Lucy's utility function is 2X_L + G and Melvin's utility function is X_MG, where G is their expenditures on the public goods they share in their apartment and where X_L and X_M are their respective private consumption expenditures.The total amount they have to spend on private goods and public goods is $24,000.They agree on a Pareto optimal pattern of expenditures in which the amount that is spent on Lucy's private consumption is $6,000.How much do they spend on public goods?

• A)$6,000
• B)$3,000
• C)$6,050
• D)$12,000
• E)There is not enough information here to be able to determine the answer.

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Definitions:

Sexually Transmitted Infection

A disease spread by sexual intercourse, resulting from bacteria, viruses, or parasites.

Abstinence

Refraining from sexual behavior with another person.

Pelvic Inflammatory Disease

An infection of the female reproductive organs, often caused by sexually transmitted infections, leading to severe complications if untreated.

Chlamydia

A sexually transmitted infection caused by the bacterium Chlamydia trachomatis, often asymptomatic but treatable with antibiotics.