A firm has a fixed sum of money B to allocate in bonus payments between two managers. Each manager appreciates receiving the bonus but resents that the other manager receives a bonus as well. Let the preferences of the two managers be given by UG = bG cbj and UJ = bJ cbG.

a)Describe the Pareto-efficient allocations when c = 0

b)Is there a Pareto-efficient allocation when 0 < c < 1? If so, describe the Pareto-efficient allocations.

c)Is there a Pareto-efficient allocation if c = 1? Is there a Pareto-efficient allocation ?

d)Is there a Pareto-efficient allocation if c > 1? Is there a Pareto-efficient allocation