Recall Bonnie and Clyde from Problem 5

Recall Bonnie and Clyde from Problem 5. Suppose that their total profits are 192H, where H is the number of hours they work per year. Their utility functions are, respectively, U_B(C_B, H) = C_B - 0.02H² and U_C(C_C, H) = C_C - 0.04H², where C_B and C_C 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 is

A) 750.
B) 2,400.
C) 1,700.
D) 1,600.
E) 850.

Correct Answer:

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