Suppose that the last dollar that Victoria receives as income brings her a marginal utility of 10

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Suppose that the last dollar that Victoria receives as income brings her a marginal utility of 10 utils while the last dollar that Fredrick receives as income brings him a marginal utility of 15 utils. If our goal is to maximize the combined total utility of Victoria and Fredrick, we should:

a. Redistribute income from Victoria to Fredrick.

b. Redistribute income from Fredrick to Victoria.

c. Not engage in any redistribution because the current situation already maximizes total utility.

d. None of the above. 

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Microeconomics Principles, Problems and Policies

ISBN: 978-1259450242

20th edition

Authors: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn

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