Consider three individuals with utility indicators UA = MA, UB = nMB, and UC = MC d. Explain the answers to parts a through c in terms of the comparability of utility.

Utility function is a mathematical representation used in economics to quantify the options of an…

a. Show that there are values of v and y that can generate any social ordering of the income allocations a = (5,2,5), b = (4.6, 1), and c = (3.4.8) when evaluated by the social welfare function W= UA+UB + UC. b. Assume instead that U₁ =+yMA, UB =+7MB, and UC=0+7MC. Show that the evaluation via the utilitarian social welfare function is unaffected by the choices of v and y.

a. Show that there are values of v and y that can generate any social ordering of the income allocations a = (5,2,5), b = (4.6, 1), and c = (3.4.8) when evaluated by the social welfare function W= UA+UB + UC. b. Assume instead that U₁ =+yMA, UB =+7MB, and UC=0+7MC. Show that the evaluation via the utilitarian social welfare function is unaffected by the choices of v and y.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter20: Consumer Choice: Maximizing Utility And Behavioral Economics

Section: Chapter Questions

Problem 2QP

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