There are two communities of 100 indivuduals. In community A, everyone’s utility is 1. In community B, utility of one individual is 0, 98 individuals have a utility of 1 each, and utility of one individual is 10. What is the value of the utilitarian social welfare function for each community. From a utilitarian standpoint, which community has a higher level of collective welfare?
There are two communities of 100 indivuduals. In community A, everyone’s utility is 1. In community B, utility of one individual is 0, 98 individuals have a utility of 1 each, and utility of one individual is 10. What is the value of the utilitarian social welfare function for each community. From a utilitarian standpoint, which community has a higher level of collective welfare?
Chapter2: Scarcity And Opportunity Costs
Section: Chapter Questions
Problem 15E
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There are two communities of 100 indivuduals. In community A, everyone’s utility is 1. In community B, utility of one individual is 0, 98 individuals have a utility of 1 each, and utility of one individual is 10. What is the value of the utilitarian social welfare function for each community. From a utilitarian standpoint, which community has a higher level of collective welfare?
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