Amaranda and Bartolo Consume Only Two Goods, X and Y

question 26

Multiple Choice

Amaranda and Bartolo consume only two goods, X and Y.They can trade only with each other and there is no production.The total endowment of good X equals the total endowment of good Y.Amaranda's utility function is U(x_A, y_A) = min{x_A, y_A} and Bartolo's utility function is U(x_B, y_B) =max{x_B, y_B}.In an Edgeworth box for Amaranda and Bartolo, the set of Pareto optimal allocations is

• A)the main diagonal.
• B)both diagonals.
• C)the whole Edgeworth box.
• D)the edges of the box and the main diagonal.
• E)the edges of the box.

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Definitions:

Multilevel Selection

A concept in evolutionary biology that argues selection operates not just on individuals, but also on groups, genes, or traits at different biological hierarchy levels.

Eusociality

The highest level of social organization in animals, characterized by cooperative brood care, generational overlap, and a division of labor between reproductive and non-reproductive individuals.

Social Behavior

Actions among individuals within the same species that are directed towards or influenced by other members of the same species, including cooperation, competition, and communication.

Inclusive Fitness Theory

A concept in evolutionary biology proposing that an organism's genetic success is derived not only from personal reproduction but also from supporting the reproduction of relatives.