A social welfare function is thought to be additive along the lines proposed by Bentham and Mill: W = U, + U2 +. + Un where U; is individual i's utility and there are n individuals. Suppose an economy is made up of two individuals, John and Jane. John's utility function is UJohn = 17VX and Jane's utility function is Ujane = 2X. There is a fixed quantity of good X (40 units) evenly divided between John and Jane (20 units for each). Social welfare (W) is equal to: W = | utils. (Enter your response rounded to the nearest whole number.)
A social welfare function is thought to be additive along the lines proposed by Bentham and Mill: W = U, + U2 +. + Un where U; is individual i's utility and there are n individuals. Suppose an economy is made up of two individuals, John and Jane. John's utility function is UJohn = 17VX and Jane's utility function is Ujane = 2X. There is a fixed quantity of good X (40 units) evenly divided between John and Jane (20 units for each). Social welfare (W) is equal to: W = | utils. (Enter your response rounded to the nearest whole number.)
Chapter4: Utility Maximization And Choice
Section: Chapter Questions
Problem 4.11P
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