Suppose the marginal utility of a dollar for Carl is 7 utils and for Judy, 12 utils. According to Lerner, society will maximize its total utility if
A) we transfer money from Carl and give it to Judy as long as the marginal utility of money for Carl is lower than that of Judy's
B) we transfer money from Carl and give it to Judy as long as the marginal utility of money for Carl is higher than Judy's
C) we transfer money from Judy and give it to Carl as long as the marginal utility of money for Judy is lower than Judy's
D) we allow the market to determine the marginal utilities of Carl and Judy regardless of whose is higher
E) Carl and Judy have the same utility functions
Correct Answer:
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