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Question 2 (in which Danny relates to today's youth). The world has two goods: boogie bombs (B) and chug jugs (C). Ninja is born with
Question 2 (in which Danny relates to today's youth). The world has two goods: boogie bombs (B) and chug jugs (C). Ninja is born with an endowment (B=100, C=20) and has a fixed marginal utility of 1 for a boogie bomb ( MU; = 1) and 0.5 for a chug jug bomb (MU? = 0.5) . His total utility is given by UN = By + 0.5CN Ifue is born with (B=5, C=50) and has a marginal utility of MU; = VC, for a boogie bomb and MU = BT CT for a chug jug. His utility is given by UT = ByVCT.' The total endowment must satisfy Br + By = 105, Cr + CN = 70
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