Multiple Choice
Recall Lucy and Melvin from Problem 6. Lucy's utility function is 2XL + G and Melvin's utility function is XMG, where G is their expenditures on the public goods they share in their apartment and where XL and XM are their respective private consumption expenditures. The total amount they have to spend on private goods and public goods is $33,000. They agree on a Pareto optimal pattern of expenditures in which the amount that is spent on Lucy's private consumption is $9,000. How much do they spend on public goods?
A) $8,550
B) $4,000
C) $8,000
D) $16,000
E) There is not enough information here to be able to determine the answer.
Correct Answer:
Verified
Correct Answer:
Verified
Q6: Just north of the town of Muskrat,
Q7: Just north of the town of Muskrat,
Q8: Recall Lucy and Melvin from Problem 6.
Q9: Just north of the town of Muskrat,
Q10: Recall Lucy and Melvin from Problem 6.
Q12: Recall Bob and Ray in Problem 4.
Q13: Recall Bonnie and Clyde from Problem 5.
Q14: Just north of the town of Muskrat,
Q15: Recall Bob and Ray in Problem 4.
Q16: Recall Bob and Ray in Problem 4.