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Imagine a Simple Economy with Only Two People,Leroy and Percy

Question 32

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Imagine a simple economy with only two people,Leroy and Percy.If the Social Welfare Function is W = UL + UP,and the Utility Possibilities Frontier is UPF = UL + 2UP,what will be the societal optimum? Imagine a simple economy with only two people,Leroy and Percy.If the Social Welfare Function is W = U<sub>L</sub> + U<sub>P</sub>,and the Utility Possibilities Frontier is UPF = U<sub>L</sub> + 2U<sub>P</sub>,what will be the societal optimum?

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The optimum would be a corner ...

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