(b) Complete the following sentence:
The initial allocation of knights and archers between Arthur and Boudica is This implies that there potential mutual gains
from trade in this story. Therefore, some voluntary exchange between Arthur and Boudica.
happen
Boudica - because of her legend as a powerful warrior-queen - has take-it-or-leave-it power with respect to Arthur (who, although also legendary, made the fatal error of leaving his sword stuck in a stone).
(c) What is Arthur's participation constraint (or fallback personal utility) in this exchange?
(Round up your answer to the third decimal number. For example, if you think the answer is 12.345678, write 12.346)
Answer: