Anthony and Brandon have a utility possibility frontier that is given by the following equation: UA + 2U = 50. Anthony and Brandon believe that the ideal allocation is given by maximizing an appropriate social welfare function. Anthony thinks that UA = 30 and Ug = 100 is the best distribution of welfare, and presents the maximization solution to a weighted-sum-of-the-utilities social welfare function that confirms this observation. Anthony's social welfare function can be written as a) W = UA + UB b) W = UA + 10UB c) W = 10UA + UB

Anthony and Brandon have a utility possibility frontier that is given by the following equation: UA + 2U = 50. Anthony and Brandon believe that the ideal allocation is given by maximizing an appropriate social welfare function. Anthony thinks that UA = 30 and Ug = 100 is the best distribution of welfare, and presents the maximization solution to a weighted-sum-of-the-utilities social welfare function that confirms this observation. Anthony's social welfare function can be written as a) W = UA + UB b) W = UA + 10UB c) W = 10UA + UB

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter4: Utility Maximization And Choice

Section: Chapter Questions

Problem 4.11P

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