Suppose that Romeo in Problem 8 has the utility function U= S° RS2, and Juliet hasthe utility function U= S2RS5, where SRis Romeo's spaghetti consumption and Sj isJuliet's. They have 42 units of spaghetti to divide between them.Juliet would want to give Romeo some spaghetti if she has more than 28a)units.Romeo would want to give Juliet some spaghetti if he has more than 26 unitsof spaghetti.C) Romeo and Juliet would never disagree about how to divide the spaghetti.d)Romeo would want to give Juliet some spaghetti if he had more than 21 unitsof spaghetti.Juliet would want to give Romeo some spaghetti if she has more than 30 unitse)of spaghetti.

We do not need to use the Lagrangean to solve this. Since the utility fuctions for both are…

Suppose that Romeo in Problem 8 has the utility function U= S° RS2,and Juliet has the utility function U= S2RS, where SRis Romeo's spaghetti consumption and S, is Juliet's. They have 42 units of spaghetti to divide between them. %3D Juliet would want to give Romeo some spaghetti if she has more than 28 a) units. b) Romeo would want to give Juliet some spaghetti if he has more than 26 units of spaghetti. C) Romeo and Juliet would never disagree about how to divide the spaghetti. d) Romeo would want to give Juliet some spaghetti if he had more than 21 units of spaghetti. Juliet would want to give Romeo some spaghetti if she has more than 30 units e) of spaghetti.

Suppose that Romeo in Problem 8 has the utility function U= S° RS2,and Juliet has the utility function U= S2RS, where SRis Romeo's spaghetti consumption and S, is Juliet's. They have 42 units of spaghetti to divide between them. %3D Juliet would want to give Romeo some spaghetti if she has more than 28 a) units. b) Romeo would want to give Juliet some spaghetti if he has more than 26 units of spaghetti. C) Romeo and Juliet would never disagree about how to divide the spaghetti. d) Romeo would want to give Juliet some spaghetti if he had more than 21 units of spaghetti. Juliet would want to give Romeo some spaghetti if she has more than 30 units e) of spaghetti.

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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