If all individuals have identical utility functions and the marginal utility of income decreases as income increases, transferring income ________ will ________ total utility.

Question

Quizplus · Accepted Answer

Given that the marginal utility of income decreases as income increases, transferring income from the rich to the poor increases total utility because the poor gain more utility from the additional income than the rich lose by giving it up.

If All Individuals Have Identical Utility Functions and the Marginal