My daughter and son both derive happiness from the consumption of toys as well as the...
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My daughter and son both derive happiness from the consumption of toys as well as the consumption of television programs bought on Amazon Prime television. Like most children they complain if they think the other child is getting. The other day my daughter literally taunted my son upon receiving a My Little Pony® doll when my son wasn't given the Kylo Ren action figure he wanted. However BOTH children enjoy watching a show called Octonauts without complaining about how "fair" it is. Let us pretend that we know my children's utility functions and they look like this: TU child (1 *Utility Octonauts) + (1*Utility from child's toys)-(1/2 utility from other child's toy) If it helps we can imagine that Octonauts is a non-competitive consumption good and toys are a competitive consumption good. Also note that each child gets one unit of utility from getting a toy but ONLY loses .5 units of utility from the other child getting a toy Did I make my children on net better off when I gave my daughter her doll? Or would I ALSO have to give my son his action figure to make them on net better off? My daughter and son both derive happiness from the consumption of toys as well as the consumption of television programs bought on Amazon Prime television. Like most children they complain if they think the other child is getting. The other day my daughter literally taunted my son upon receiving a My Little Pony® doll when my son wasn't given the Kylo Ren action figure he wanted. However BOTH children enjoy watching a show called Octonauts without complaining about how "fair" it is. Let us pretend that we know my children's utility functions and they look like this: TU child (1 *Utility Octonauts) + (1*Utility from child's toys)-(1/2 utility from other child's toy) If it helps we can imagine that Octonauts is a non-competitive consumption good and toys are a competitive consumption good. Also note that each child gets one unit of utility from getting a toy but ONLY loses .5 units of utility from the other child getting a toy Did I make my children on net better off when I gave my daughter her doll? Or would I ALSO have to give my son his action figure to make them on net better off?
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The detailed answer for the above question is provided below Yes you made your children on net bette... View the full answer
Related Book For
Financial Accounting Tools for business decision making
ISBN: 978-0470534779
6th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Posted Date:
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