Question

Imagine a simple economy with only two people: Augustus and Livia. a. Let the social welfare function be
W = UL + UA
where U L and U A are the utilities of Livia and Augustus, respectively. Graph the social indifference curves. How would you describe the relative importance assigned to their respective well- being?
b. Repeat part a when
W = UL + 2UA
c. Assume that the utility possibilities curve is as follows:


$1.99
Sales4
Views634
Comments0
  • CreatedMarch 25, 2015
  • Files Included
Post your question
5000