Joey has a Utility function of Uj=2P2/3B1/2 and Chandler has a utility function of Uc = P2B
Joey marginal utility of pizza(p) is MUjp = 4/3P-1B1/3 and beer(b) is MUjb = 2/3P2/3B-2/3
Chandlers marginal utilty of pizza is MUcp = 2PB and MUcb = P2
Initially Joey has 15 pizzas and 10 bottles of beer. Chandler has 10 pizza and 10 bottles of beer.
What are the marginal rates of substitution MRSPB (of beer for pizza) for each
person at initial allocation? and is it Pareto efficient?
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