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.

---

Definitions:

Social Integration

The process by which individuals gain equal opportunities and access within a society’s institutions and social networks, promoting a sense of belonging.

Social Networking

The use of internet-based platforms to connect, share, and communicate with others for social or professional purposes.

Social Support

The assistance and protection given by friends, family, and others, which can impact an individual's health, well-being, and ability to cope with stress.

Liver Damage

Harm caused to the liver due to various factors such as diseases, excessive alcohol consumption, or exposure to toxic substances, impairing its functioning.