Alyssa currently earns $105,000 a year, while her junior partner, Oakley, earns $65,000 a year. From the perspective of a utilitarian, if both of their incomes are subject to diminishing marginal utility, taking a dollar from Alyssa and giving it to Oakley will

Question

Quizplus · Accepted Answer

Taking a dollar from Alyssa, who has a higher income, and giving it to Oakley, who has a lower income, will increase society's total utility because the marginal utility of income is higher for Oakley than for Alyssa due to diminishing marginal utility.

Alyssa Currently Earns $105,000 a Year, While Her Junior Partner