A social welfare function is thought to be additive along the lines proposed by Bentham and Mill: + Un W = U, + U2 + ... + where U; is individual i's utility and there are n individuals. Suppose an economy is made up of two individuals, John and Jane. John's utility function is Ujohn = 28/X and Jane's utility function is UJane = 2X. %D There is a fixed quantity of good X (100 units) evenly divided between John and Jane (50 units for each). Social welfare (W) is equal to: W = utils. (Enter your response rounded to the nearest whole number.) Social welfare could be improved if a portion of good X were transferred from to John Jane

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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A social welfare function is thought to be additive along the lines proposed by Bentham and Mill:
+ Un
W = U, + U2 + ...
+
where U; is individual i's utility and there are n individuals.
Suppose an economy is made up of two individuals, John and Jane. John's utility function is
Ujohn = 28/X
and Jane's utility function is
UJane = 2X.
%D
There is a fixed quantity of good X (100 units) evenly divided between John and Jane (50 units for each).
Social welfare (W) is equal to:
W =
utils. (Enter your response rounded to the nearest whole number.)
Social welfare could be improved if a portion of good X were transferred from
to
John
Jane
Transcribed Image Text:A social welfare function is thought to be additive along the lines proposed by Bentham and Mill: + Un W = U, + U2 + ... + where U; is individual i's utility and there are n individuals. Suppose an economy is made up of two individuals, John and Jane. John's utility function is Ujohn = 28/X and Jane's utility function is UJane = 2X. %D There is a fixed quantity of good X (100 units) evenly divided between John and Jane (50 units for each). Social welfare (W) is equal to: W = utils. (Enter your response rounded to the nearest whole number.) Social welfare could be improved if a portion of good X were transferred from to John Jane
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