An owner converted a warehouse to offices. As there was not enough parking for employees, they converted the roof into a parking
1 answer:
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Answer:
Charlie consumes 100 books and 25 wines at pareto-optimal allocation, is the right answer.
Explanation:
According to the question, book is denoted with b whereas, wine is denoted with w.
The Utility function of Martha is-
The Utility function for Charlie is-
= $1 :
= $4
At pareto-optimality,
The budget constraint,
Therefore, it may be said that Charlie must consume 100 books and 25 wine at pareto-optimal allocation.