Optimal Distribution Of Income For Social Welfare Function Homework Help

Suppose two people, Mr. Mullinax and Ms. Fleming, must split a fixed income of $500. For Mr. Mullinax, the marginal utility of income is MU_m = 600 − 2I_m, while for Ms. Fleming, the marginal utility is MU_f = 600 − 3I_f, where I_m and I_f are the amounts of income of Mr. Mullinax and Ms. Fleming, respectively.

                                      i.     What is the optimal distribution of income if the social welfare function is additive?

                                    ii.     What is the optimal distribution if society values only the utility of Ms. Fleming? What if the reverse is true? Explain your answer.

Suppose two people, Mr. Mullinax and Ms. Fleming, must split a fixed income of $500. For Mr. Mullinax, the marginal utility of income is MU_m = 600 − 2I_m, while for Ms. Fleming, the marginal utility is MU_f = 600 − 3I_f, where I_m and I_f are the amounts of income of Mr. Mullinax and Ms. Fleming, respectively.

                                      i.     What is the optimal distribution of income if the social welfare function is additive?

                                    ii.     What is the optimal distribution if society values only the utility of Ms. Fleming? What if the reverse is true? Explain your answer.