Multiple Choice
Remember Bonnie and Clyde from your workbook? Suppose that their total profits are 112H, where H is the number of hours they work per year. Their utility functions are, respectively, UB(CB, H) = CB - 0.02H2 and UC(CC, H) = CC - 0.02H2, where CB and CC are their private goods consumptions and H is the number of hours they work per year. If they find a Pareto optimal choice of hours of work and income distribution, the number of hours they work per year must be
A) 1,400.
B) 750
C) 650 1,500.
D) 650.
Correct Answer:

Verified
Correct Answer:
Verified
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