Question
Social welfare functions.Consider a pure exchange economy (no production) and an egalitarian social welfare function that says that everybody should get the same amount of
Social welfare functions.Consider a pure exchange economy (no production) and an egalitarian social welfare function that says that everybody should get the same amount of each product, which they then consume.For the 2 product case below, explain, based on our course material, why an economist would likely disagree with this, and how to improve this approach. use the diagram.
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Price theory and applications
Authors: Steven E landsburg
8th edition
538746459, 1133008321, 780538746458, 9781133008323, 978-0538746458
