Suppose two people, A and B, are in love and care for the other’s happiness as well as their own consumption. UA = (CAUB
Posted: Sun Jul 03, 2022 1:01 pm
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.
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.