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

question 5

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 $39,000.They agree on a Pareto optimal pattern of expenditures in which the amount that is spent on Lucy's private consumption is $9,000.How much do they spend on public goods?

• A)$9,550
• B)$20,000
• C)$5,000
• D)$10,000
• E)There is not enough information here to be able to determine the answer.

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