Friends A, B and C all consume pizza and music. Pizza is a pure private good and music is a pure
public good. Their utility functions are Ui (Pi, M) = PiM for i= {A,B,C} where Pi is person is pizza
consumption and M is the amount of music jointly consumed by all three of them. Music is
measured in hours. Pizza costs 1 a slice. Music costs 10 an hour. A's wealth is 30, B's wealth is
50, and C's wealth is 20. What is the efficient amount of music for them to consume?
A) 2 hours
B) 3 hours
C) 4 hours
D) 5 hours
E) 6 hours.
Enzyme, Pharmaceutical Aids, Miscellaneous Last Part of Chapter no 5th.pdf
Friends A B and C all consume pizza and music Pizza is a p.pdf
1. Friends A, B and C all consume pizza and music. Pizza is a pure private good and music is a pure
public good. Their utility functions are Ui (Pi, M) = PiM for i= {A,B,C} where Pi is person is pizza
consumption and M is the amount of music jointly consumed by all three of them. Music is
measured in hours. Pizza costs 1 a slice. Music costs 10 an hour. A's wealth is 30, B's wealth is
50, and C's wealth is 20. What is the efficient amount of music for them to consume?
A) 2 hours
B) 3 hours
C) 4 hours
D) 5 hours
E) 6 hours
