- 19 Suppose Two People A And B Are In Love And Care For The Other S Happiness As Well As Their Own Consumption Ua 1 (18.01 KiB) Viewed 16 times
19. Suppose two people, A and B, are in love and care for the other's happiness as well as their own consumption. UA = (
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19. Suppose two people, A and B, are in love and care for the other's happiness as well as their own consumption. UA = (
19. Suppose two people, A and B, are in love and care for the other's happiness as well as their own consumption. UA = (CAUB)¹/2 UB= (CBUA)¹/2 Suppose they have 100 units of consumption to distribute, they will maximize the joint happiness (UA + UB) where (a) CA= 100, CB = 0. (b) CB 100, CA = 100. (c) CA = 67, CB = 33. (d) CB= 50, CA = 50. I