ECON 330
This question goes back to Chapter 3 on Normative Analysis, and you need to use a little calculus. Suppose that Tang and Wilson must split a fixed...
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This question goes back to Chapter 3 on Normative Analysis, and you need to use a little

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calculus. Suppose that Tang and Wilson must split a fixed 400 pounds of food between them.


Tang's utility function is


and Wilson's utility function is


, where F


T


and




=






=


0.5




F


W


are pounds of food to Tang and Wilson, respectively. [


Useful note: F


T


+ F


W


= 400


]


A. How much utility will Tang and Wilson each receive if the food is distributed evenly


between them?


B. If the social welfare function is given by


, then what distribution of food


푆푊퐹


=




+




between Tang and Wilson maximizes social welfare?


C. If social welfare is maximized when Tang and Wilson obtain the same level of utility,


then what is the distribution of food between Tang and Wilson that maximizes social


welfare?

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