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 Rawlsian social welfare function?

Data From Problem 1

Assume that Crusoe and Friday have identical utility functions described by the following table.

Draw the utility function. Fill in the marginal utility data in the table above, and draw the marginal utility function.

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Utility Functions for Friday and Crusoe NUMBER OF ORANGES UTILITY 1 11 2 21 3 30 4 38 5 45 6 48 7 8 50 51 MARGINAL UTILITY