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PLZ FILL IN THE BLANKS USING INFORMATION PROVIDED Society consists of two individuals, A and B, who must split a fixed income of $100.Individual A's
PLZ FILL IN THE BLANKS USING INFORMATION PROVIDED
Society consists of two individuals, A and B, who must split a fixed income of $100.Individual A's marginal utility of income is given by MUA=400-2IA and individual B's marginal utility of income is given by MUB=200-4IB.
Suppose the social welfare function is W=UA+UB.
30. What is social welfare at the optimal distribution of income? $ ______________
What if the social welfare function is, instead, W=UB.
31. What is social welfare at the optimal distribution of income? $ ______________
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