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Business, 01.10.2019 20:30 fgcherubin

Uppose that $100 has just been given to the smith family. mr. and mrs. smith have only one child whose name is ima brat smith. suppose that money is the only thing that matters to the smiths and that the utility each member receives from money, y, is as listed below: mr. smith: ud(yd ) = 5yd and mrs. smith: um(ym ) = 2ym and ima brat: uk(yk ) = 1yk note: d is for dad, m is for mom, and k is for kid. therefore, yd + ym + yk = $100. a) what division of the $100 results if the family maximizes a utilitarian swf? b) what division of the $100 results if the family uses an utility-egalitarian swf? which method is more fair? why or why not?

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Uppose that $100 has just been given to the smith family. mr. and mrs. smith have only one child who...

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