assume that Crusoe's and Friday's utility function as described in the question no.1. But assume now that
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Question:
assume that Crusoe's and Friday's utility function as described in the question no.1. But assume now that initially crusoe ahs six oranges and friday has two. assume that for every two oranges taken away from crusoe friday gets only one, an orange is being lost in the process.what does the utility possibility curve looks like now? which of the feasible allocations maximizes social welfare with a utilitarian social function?with a rawlsian social welfare function?
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