Dorys utility function is udxy x7y. at a pareto optimal , Ask an Expert

Economics

A small economy has only two consumers, Char and Dory and two goods, X and Y. Char's utility function is Uc(x,y) = x+154y^(1/2). Dory's utility function is Ud(x,y) = x+7y. at a pareto optimal allocation in which both individuals consume some of each good, how much y does Char consume?

a). 121
b). 9
c). 22
d).18
e). We can't tell without knowing the initial endowments

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M953079

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