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Suppose that Beyonce and Madonna have utility functions ry + 0, In (g) where J = B for Beyonce and J = M for Madonna.

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Suppose that Beyonce and Madonna have utility functions ry + 0, In (g) where J = B for Beyonce and J = M for Madonna. ary is a private good and g is a public good. Op = 2 and OM = 4. Each of them has 10 units of the private good that can be transformed into units of the public good on a one o one basis. Consider four possible allocations of these goods: Allocation 1: 9 = Q, TB = CM = 10 Allocation 2: g = 2, TB = IM = 9 Allocation 3: 9 = 6, TB = 10, TM = 4 Allocation 4: g = 2, TB = 8, IM = 10 a) Is allocation 1 Pareto efficient? b ) Which allocation maximizes the sum of utilities

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