# Question: This problem is for readers who know some calculus Suppose

[This problem is for readers who know some calculus.] Suppose that there are only two people in society, Mark and Judy, who must split a fixed amount of income of $ 300. Mark’s utility function is UM and his income is IM . Judy’s utility function is UJ and her income is IJ . Sup-pose that

UM = 100 × IM 1/ 2 and UL = 200 × IJ 1/ 2

Let the social welfare function be

W =UM + UJ

What distribution of the total income between Mark and Judy maximizes social welfare?

UM = 100 × IM 1/ 2 and UL = 200 × IJ 1/ 2

Let the social welfare function be

W =UM + UJ

What distribution of the total income between Mark and Judy maximizes social welfare?

## Answer to relevant Questions

Suppose that Tang and Wilson must split a fixed 400 pounds of food between them. Tang’s utility function is UT = sqrt (F1) and Wilson’s utility function is UW = ½ sqrt (F2 ), where F1 and F2 are pounds of food to Tang ...Tarzan and Jane live alone in the jungle and have trained Cheetah both to patrol the perimeter of their clearing and to harvest tropical fruits. Cheetah can collect 3 pounds of fruit an hour and currently spends 6 hours ...A lone shepherd can graze 10 sheep per year in a meadow. Each additional shepherd who uses the meadow reduces the number of sheep that can be maintained by one per shepherd. If a person would rather stay home than graze ...For each of the following situations, is the Coase Theorem applicable? Why or why not? a. A farmer who grows organic corn is at risk of having his crop contaminated by genetically modified corn grown by his neighbors. b. ...In 2005, Kuwaiti women won the right to vote in parliamentary elections. Indeed, women voters now outnumber men voters in Kuwait because women are automatically registered while men have to register on their own. One woman ...Post your question