Please provide step-by-step answer. Thanks! 9Suppose a family orders one pizza to be shared exclusivelyby their two children. child 1child 1 gets afraction S₁9.2while child 2 getsS₂.The utility of child I for a fraction of s, is given by,V₁ (5₁) = S₁The utility of child 2 for a fraction 5₂ of the pizzais given byU₂ (S₂) = 35₂9.1 suppose familySuppose family wants to maximize sum of utilities, i.eu,family = U₁ (S₁) + U₂ (5₂)иwrite the family maximisation problem. What fractionof pizza should be allocated to child 1.Suppose now the family utility is the lowest utilityof 2 children, i.e.,min [v₁ (3₁), 0₂ (5₂)]=familywrite family maximisation problem. What fractionof pizza should be allocated to child 1 29.3 Define a pízza sharing as fight-proof if neither childprefers the fraction of pizza allocated to the other one.what share of the pizza should child I get if thepizza sharing is fight-proof?0

Utility of Child 1 : U(S1 ) = S1 Utility of Child 2 : U (S2) = 3S2 Utility maximizing point is…

9 family orders one pizza to be shared exclusively. gets a fraction S₁ Suppose a by their two children, child 1 while child 2 gets S₂. The utility of child I for a fraction of s, is given by, U₁ (S₁) = S₁ The utility of child 2 for a fraction S₂ of the pizza

9 family orders one pizza to be shared exclusively. gets a fraction S₁ Suppose a by their two children, child 1 while child 2 gets S₂. The utility of child I for a fraction of s, is given by, U₁ (S₁) = S₁ The utility of child 2 for a fraction S₂ of the pizza

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter4: Utility Maximization And Choice

Section: Chapter Questions

Problem 4.12P

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i will 10 upvotes urgent Say Anna's utility function is given by UA = MAMM, where MA is Anna's wealth and MM is Marie's wealth. Initially, Anna has 160 units of wealth and Marie has 40. When Anna maximizes her utility, her utility level is equal to: Multiple Choice 10,000. 5,000. 100. 200.
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Suppose the consumer's utility function is given by U(x,y) = X3/5y2/5, and the exogenous variables are given by M = 500, Px = 5, and Py = 4. Price of y changes to Py = 2. What is the income effect ony?O A.-14.53O B. +14.53O C. +24.21O D. +25.79O E. None of the above
Suppose the consumer's utility function is given by U(x,y) = X3/5y2/5, and the exogenous variables are given by M = 500, Px = 5, and Py = 4. Price of y changes to Py = 2. What is the income effect ony?O A.-14.53O B. +14.53O C. +24.21O D. +25.79O E. None of the above Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
Consider an economy with 2 goods and 2 identical agents, each of whom has the following utility function, u (x1; x2) = ln x1 + 2 ln x2. The aggregate endowments of the 2 goods are given by (1; 2). Suppose there is a social planner who cares about agents equally.(a) Set up the plannerís problem.(b) Calculate the first-best outcome 2. Consider an economy with 2 goods and 2 identical agents, each of whom has thefollowing utility function, 11(31, 3:2) = In 3:; + 2111332. The aggregate endowments ofthe 2 goods are given by (1, 2). Suppose there is a. social planner who cares aboutagents equally. (a) Set up the planner’s problem.(b) Calculate the ﬁrst-best outcome (11.6., the social planner’s solution).
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