Xavier and Yvette Are the Only Two Persons on a Desert

question 42

Multiple Choice

Xavier and Yvette are the only two persons on a desert island.There are only two goods, nuts and berries.Xavier's utility function is U(N_x, B_x) = N_xB_x.Yvette's utility function is U(N_y, B_y) = 2N_y + B_y.Xavier is endowed with 3 units of berries and 8 units of nuts.Yvette is endowed with 6 units of berries and 8 units of nuts.In a competitive equilibrium for this economy, how many units of berries does Xavier consume?

• A)12.50
• B)19
• C)7.50
• D)9.50
• E)None of the above.

---

Definitions:

Corporation

A legal entity that is separate and distinct from its owners, capable of owning property, entering into contracts, and being sued.

Promoters

Individuals or companies that engage in the organization and finance of business ventures, events, or performances.

Corporate Form

A legal structure for businesses that is recognized as a separate legal entity from its owners, providing liability protection and other benefits.

Duties

Responsibilities or obligations required by one's role, job, or by law.