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[25] Besties, Sohail and Jimmy are binge-watching Twilight when the Covid lockdown starts. Owing to mobility restrictions, for a two-week period, they are shut off
[25] Besties, Sohail and Jimmy are binge-watching Twilight when the Covid lockdown starts. Owing to mobility restrictions, for a two-week period, they are shut off from the rest of society ( think of this as a deserted island situation). Although they are unable to produce anything, they are very fortunate and each of them has a supply of cookies (c) and Mountain Dew (d). Sohail has 4 cookies and 3 bottles of Mountain Dew, while Jimmy has 3 cookies and 4 bottles of Mountain Dew. Although they like the same products, they have different preferences over them; Sohail's utility function is U(c,d) = cd and Jimmy's utility function is U(c d) = 3cad. a. [4] Characterize the set of Pareto Optimal allocations of cookies and Mountain Dew across Sohail and Jimmy
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