3 2. Consider a cake that is half-chocolate and half-vanilla that will be apportioned to Alice, Bob, andCharlie. Alice receives xfand xof chocolate and vanilla respectively, Bob receives xand xofchocolate and vanilla respectiveiy, and Charlie receives xand xof chocolate and vanilla respectivelyTheir respective utilities are: Uf =UX =.uf=3, u = UE = U =If Alice gets half the chocolate part of the cake and a third of the vanilla, Bob gets a quarter of thechocolate part of the cake and a third of the vanilfa.a) What are Alice, Bob, and Charlie's total pay-offs?b) Is division fair under the proportionality criterion? Explain.c) is the division fair under the equity criterion? Explain.d) Is the division envy-free? Explain.

The aim of this question is to share a cake that is half chocolate and half vanilla. It gets a…

2. Consider a cake that is half-chocolate and half-vanilla that will be apportioned to Alice, Bob, and Charlie. Alice receives xand x of chocolate and vanilla respectively, Bob receives xand xof chocolate and vanilla respectively, and Charlie receives and x of chocolate and vanilla respectively Their respective utilities are: U=UX - U%= UX = 1,u = 2 = If Alice gets half the chocolate part of the cake and a third of the vanilla, Bob gets a quarter of the chocolate part of the cake and a third of the vanilla.... a) What are Alice, Bob, and Charlie's total pay-offs? b) Is division fair under the proportionality criterion? Explain. c) is the division fair under the equity criterion? Explain.

2. Consider a cake that is half-chocolate and half-vanilla that will be apportioned to Alice, Bob, and Charlie. Alice receives xand x of chocolate and vanilla respectively, Bob receives xand xof chocolate and vanilla respectively, and Charlie receives and x of chocolate and vanilla respectively Their respective utilities are: U=UX - U%= UX = 1,u = 2 = If Alice gets half the chocolate part of the cake and a third of the vanilla, Bob gets a quarter of the chocolate part of the cake and a third of the vanilla.... a) What are Alice, Bob, and Charlie's total pay-offs? b) Is division fair under the proportionality criterion? Explain. c) is the division fair under the equity criterion? Explain.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter10: Consumer Choice Theory

Section: Chapter Questions

Problem 9P

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DmISIIng Margifal Otmty n. TOTAL AND MARGINAL UTILITY Reset E UTILITY CALCULATIONS Total Utility Quantity Consumed Total Marginal Utility 70 Utility 60 50 22 40 1 22 30 18 20 40 10 14 2 3 4 54 Quantity Consumed 10 Marginal Utility 4 64 20 6. 10 70 3. 6. -10 6. 72 -20 -2 7 70 Quantity Consumed Quantity Consumed -6 8. 64 8 Prev 1 of 3 Score answer > ...
ê Suppie Concumer bes a utility function 4 x, (x,+2=) and facer a M. 'Derive and giet ber dem and for goed 2.