Question: = (c) For a social welfare function W W(U(M),...,UH (MH)), where Mh is in- aw ath If Uh come, the social marginal utility of
= (c) For a social welfare function W W(U(M),...,UH (MH)), where Mh is in- aw ath If Uh come, the "social marginal utility of income" is defined by M [M] Vh show that the social marginal utility of income is decreasing in Mh for a utilitarian social welfare function. Use this to argue that a fixed stock of income will be distributed equally. Show that the argument extends to any anonymous and concave social welfare function when all consumers have the same utility function. =
Step by Step Solution
3.48 Rating (148 Votes )
There are 3 Steps involved in it
c For a ulitarian social welfare function the social welfare is sum of all individual ... View full answer
Get step-by-step solutions from verified subject matter experts
