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A social welfare function is thought to be additive along the lines proposed by Bentham and Mill: W = Uj + U2+ ... + Un
A social welfare function is thought to be additive along the lines proposed by Bentham and Mill: W = Uj + U2+ ... + Un where U; is individual i's utility and there are n individuals. Suppose an economy is made up of two individuals, John and Jane. John's utility function is U John = 3 X and Jane's utility function is Jane = 4X. There is a fixed quantity of good X (120 units) evenly divided between John and Jane (60 units for each). Social welfare (W) is equal to: W =utils. (Enter your response rounded to the nearest whole number.) Social welfare could be improved if a portion of good X were transferred from John to Jane
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