2. Residents in a town are voting to decide where a new library will be built. The residentshomes are on the same street and the "map" of the town is represented below. The lettersrepresent the location of each house. The numbers represent distance in 100 meters (in otherwords, house 'a' is 100 meters from house 'b' and 1200 meters from house 'i'). Each house-hold would receive a utility of 12 if the library was built in front of that house; utility decreasesby I unit as the distance to the library increases by 100 meters.Use the distance markers (the numbers) to indicate where the library should go according tothe following aggregation methods:a b cde fghi012 34 5 67 8 9 10 11 12(a) A simple majority vote?(b) A Rawlsian planner?(c) A standard utilitarian function?

A Utility function in economics represents the subjective options or pleasure that people derive…

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standard utilitarian function

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

2. Residents in a town are voting to decide where a new library will be built. The residents
homes are on the same street and the "map" of the town is represented below. The letters
represent the location of each house. The numbers represent distance in 100 meters (in other
words, house 'a' is 100 meters from house 'b' and 1200 meters from house 'i'). Each house-
hold would receive a utility of 12 if the library was built in front of that house; utility decreases
by I unit as the distance to the library increases by 100 meters.
Use the distance markers (the numbers) to indicate where the library should go according to
the following aggregation methods:
a b cde fg
hi
012 34 5 67 8 9 10 11 12
(a) A simple majority vote?
(b) A Rawlsian planner?
(c) A standard utilitarian function?

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