Multiple Choice
Remember Bonnie and Clyde from your workbook? Suppose that their total profits are 40H, where H is the number of hours they work per year.Their utility functions are, respectively,
UB(CB, H ) = CB - 0.02H 2 and UC(CC, H ) = CC - 0.03H 2, 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) 500
B) 400
C) 150
D) 250
Correct Answer:

Verified
Correct Answer:
Verified
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