Assume in the market with two consumers, Chloe and Oliver.
Chloe’s utility function is U(x, y) = x + 80√y.
Oliver’s utility function is U(x, y) = x + 8y. At a Pareto optimal
allocation in which both individuals consume some of each good, how
much y does Chloe consume?
a. 25
b. 18
c. 121
d. We can’t tell without knowing the initial endowments.