5. Mutt's utility function is m, )- max( 3m,J) and Jeff's utility function is U(m,j)-2m +j....
Mutt's utility function is Um,j) max3m,j) and Jeffs utility function is U(m,j)-3m + j. Mutt is initially endowed with 6 units of milk and 2 units of juice and Jeff is initially endowed with 2 units of milk and 6 units of juice. If we draw an Edgeworth box with milk on the horizontal axis and juice on the vertical axis and if we measure goods for Mutt by the distance from the lower left corner of the box, then...
Maurice is characterized by the utility function UMwb, wiehilip by U(bP.wP) -bPwP, where bi, i-M,P denotes the number of books that each of them has and wi the number of bottles of wine, respectively. If the bottom-left comer of the Edgeworth box reflects zero consumption for Maurice and the number of books is measured along the horizontal axis, the contract curve will contairn a) the Edgeworth box diagonal b) a straight segment with a slope of 1 including the bottom-left...
40. Morris has the utility function U(b, w) 3b +3w and Philip has the utility function U(b, w) - bw, where b is the number of books consumed per month and w is bottles of wine consumed per month. If we draw an Edgeworth box with books on the horizontal axis and wine on the vertical axis and if we measure Morris's consumptions from the lower left corner of the box, then the contract curve contains a. a straight line...
C1 [19 marks] Suppose Malcolm and Barnaby are the only two people in a pure exchange economy. Food and clothing are the only two commodities. Malcolm is endowed with 30 units of food and 10 units of clothing, while Barnaby is endowed with 10 units of food and 30 units of clothing. Let F = units of food and C = units of clothing. Malcolm’s utility function is UM = 2 min(F, C) and Barnaby’s utility function is UB =...
Consider a pure exchange economy two consumers, Rachel and Lauren, and two commodities, watermelon and tomatoes. Rachel’s initial endowment is 4 units of watermelon and 3 units of tomatoes. Lauren’s initial endowment is 2 units of watermelon and 5 units of tomatoes. Rachel and Lauren have identical utility functions: Rachel’s utility is UR(WR,TR) = WRTR where WR and TR is Rachel’s quantity of watermelon and quantity of tomatoes, respectively; similarly, Lauren’s utility is UL(WL,TL) = WLTL where WL and TL...
1. (19 pts) Adrienne and Deepa consume pizza, Z, and cola, C. Adrienne's utility function is UA = Z CA and Deepa' s utility function is U = 29.5C9.5. Adrienne's marginal utility of pizza is MUZ = CA, and her marginal utility of cola is MUS = Z . Similarly, Deepa' s marginal utility of pizza is MU} = -2;0.500.5 and her marginal utility of cola is MUS = -2,5050.5. Their initial holdings of pizza and cola are ZA =...
Anne and Bill are left stranded on a desert island with nothing else but some water x and bread y. There are 100 units available of each good. Suppose that initially Anne has all the water and Bill has all the bread. Anne and Bill have different preferences over the consumption of water and bread. Anne’s utility function is ??(?,?)=? raised 2/5 ? raised3/5, and Bill’s utility function is ??(?,?)=? raised 1/4 ? raised3/4. [30 marks] a) [3 marks] Is...
Anne and Bill are left stranded on a desert island with nothing else but some water x and bread y. There are 100 units available of each good. Suppose that initially Anne has all the water and Bill has all the bread. Anne and Bill have different preferences over the consumption of water and bread. Anne’s utility function is ??(?,?)=? raised to 2/5, y raised to 3/5, and Bill’s utility function is ??(?,?)=? raised to 1/4 y raised to3/4 [30...
please make sure you read the utility function
Consider the Isle of lost 60's sitcom stars. Adam once played a campy version of Batman and Eve played a daughter in a large family. Both left Hollywood to live on an island. Since they are the only two on the island they form a very small exchange economy where there are only two goods: food (F) and housing (H). Eve who has the utility Ue (Fe, He Fe He and Adam...
Question 1 1 pts What is the kinetic energy of a man who weighs 980N who is riding in a car traveling 40 km per hour? Express your answer in Joules, but don't type the unit in the answer box. Round to the nearest whole number. (Careful with the units) 1 pts Astudent slides her 80.0-kg desk across the level floor of her dormitory room a distance 4.00 m at constant speed. If the coefficient of kinetic friction between the...