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

question 25

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 $33,000.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 spent on public goods?

• A)$4,000
• B)$16,000
• C)$8,550
• D)$8,000
• E)There is not enough information here to be able to determine the answer.

---

Definitions:

Cochlea

A spiral-shaped, fluid-filled inner ear structure responsible for converting sound waves into nerve impulses.

Middle Ear

The portion of the ear internal to the eardrum and external to the inner ear, containing three small bones that transmit sound vibrations to the inner ear.

Hammer

A tool typically used for pounding nails into, or extracting nails from, some other object. Generally features a handle and a heavy head.

Anvil

A heavy iron block typically used in metalworking upon which metal can be hammered and shaped.