Answered: u₁(x11, X12) = X11X12, W₁ = (8,16)…

u₁(x11, X12) = X11X12, W₁ = (8,16) U₂(X21,x22) = X21x22 W₂ = (8,16) Individual 1's consumption in a Pareto efficient allocation with u,=50: (A) (10,5) (B) (5,10) (C) (25,2) (D) (2,25)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

u, (x11, X12) = X11X12,
W, = (8,16)
U₂(X21,x22) = X21x22
W₂ = (8,16)
Individual 1's consumption in a Pareto efficient allocation with u₁=50:
(A) (10,5)
(B) (5,10)
(C) (25,2)
(D) (2,25)

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am. 273.