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Connect Problem CP 23-07 (algo) Suppose that you are given $40,000 to split between two people, Jane and Fred. The income and marginal utility for
Connect Problem CP 23-07 (algo) Suppose that you are given $40,000 to split between two people, Jane and Fred. The income and marginal utility for each of them is shown in the following table. MU of Jane's Last MU of Fred's Last Amount to Jane Amount to Fred Dollar Spent Dollar Spent $ 5,000 $ 35, 000 $ 100 $ 85 $ 10,000 $ 30, 000 $ 90 $ 90 $ 15, 000 $ 25, 000 $ 80 $ 95 $ 20, 000 $ 20,000 $ 70 $ 100 $ 25, 000 $ 15, 000 $ 60 $ 105 Instructions: Enter your answers as a whole number. If you want to maximize their combined utility, how much of the $40,000 should go to Jane? How much should go to Fred? Amount to Jane = $ 10000 Amount to Fred = $ 30000
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