ment is 17 bottles of wine and 5 books and Jack's wife's endowment is 20 ks. Edgeworth box, Jack's consumption is measured from the lower left corner, per right corner of the box; the wine is on the horizontal axis and books are ore, in an Edgeworth box for Jack and his wife, there is only one Pareto Opt located in the top left corner of the box. True or False? submit 1 if True and 0 if False.

Algebra for College Students
10th Edition
ISBN:9781285195780
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter12: Algebra Of Matrices
Section12.CR: Review Problem Set
Problem 37CR
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E1
Jack Sparrow and his wife consume wine (W) and books (B).
Jack Sparrow's utility function is Ujack(W, B) = W. His wife's utility function is Uwife(W, B)= B. Jack's
endowment is 17 bottles of wine and 5 books and Jack's wife's endowment is 20 bottles of wine and
14 books.
In the Edgeworth box, Jack's consumption is measured from the lower left corner, and his wife's from
the upper right corner of the box; the wine is on the horizontal axis and books are on the vertical
axis.
Therefore, in an Edgeworth box for Jack and his wife, there is only one Pareto Optimal allocation
that is located in the top left corner of the box. True or False?
Please submit 1 if True and 0 if False.
Transcribed Image Text:Jack Sparrow and his wife consume wine (W) and books (B). Jack Sparrow's utility function is Ujack(W, B) = W. His wife's utility function is Uwife(W, B)= B. Jack's endowment is 17 bottles of wine and 5 books and Jack's wife's endowment is 20 bottles of wine and 14 books. In the Edgeworth box, Jack's consumption is measured from the lower left corner, and his wife's from the upper right corner of the box; the wine is on the horizontal axis and books are on the vertical axis. Therefore, in an Edgeworth box for Jack and his wife, there is only one Pareto Optimal allocation that is located in the top left corner of the box. True or False? Please submit 1 if True and 0 if False.
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