Question
Suppose that the utility possibility frontier for two individuals, A and B, is given by U A +2U B =200. If the social welfare function
Suppose that the utility possibility frontier for two individuals, A and B, is given by UA+2UB=200. If the social welfare function is given by W=UAUB, then UA=100 and UB=50 will be socially optimal.
True or False?
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Macroeconomics Principles And Policy
Authors: William J. Baumol, Alan S. Blinder
11th Edition
0324586213, 978-0324586213
