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

question 6

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 $28,000.They agree on a Pareto optimal pattern of expenditures in which the amount that is spent on Lucy's private consumption is $10,000.How much do they spent on public goods?

• A)$12,000
• B)$3,000
• C)$6,000
• D)$8,050
• E)There is not enough information here to be able to determine the answer.

---

Definitions:

Chain Reaction

A sequence of reactions where a reactive product or by-product causes additional reactions to take place, often leading to a self-sustaining series of events.

Enterprise Success

The achievement of desired business outcomes, such as profitability, market share growth, and innovation.

Soviet Union

A former federal socialist state in northern Eurasia that existed from 1922 to 1991, officially known as the Union of Soviet Socialist Republics (USSR).