Suppose two people, A and B, are in love and care for the other’s happiness as well as their own consumption. UA = (CAUB

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

Suppose two people, A and B, are in love and care for the other’s happiness as well as their own consumption. UA = (CAUB

Post by answerhappygod »

Suppose two people, A and B, are in love and carefor 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, theywill 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.
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Top
Post Reply

Return to “Archived Questions & Answers”