Assume that Crusoe's and Friday's utility functions are described in Problem 1. Assume now, though, that initially Crusoe has six oranges and Friday two. Assume that for every two oranges taken away from Crusoe, Friday gets only one, an orange being lost in the process. What does the utility possibilities schedule look like now? Which of the feasible allocations maximizes social welfare with a utilitarian social welfare function? With a Rawlins social welfare function?
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This is a topic in the Business economics about the total utility, marginal utility, how in reality trade-off takes place & in order to improve the socially optimum utilization how the government helps in balancing the inequality. This document is prepared in the MS word & details out tables, units & everything.