Ms.Shanahan currently earns $100,000 a year,while her junior partner,Mr.Koslo,earns $55,000 a year.From the perspective of a utilitarian,if both of their incomes are subject to diminishing marginal utility,what will taking a dollar from Ms.Shanahan and giving it to Mr.Koslo do

Question

Quizplus · Accepted Answer

According to the law of diminishing marginal utility, the more income a person has, the less utility they derive from an additional dollar. Since Ms. Shanahan earns more than Mr. Koslo, taking a dollar from her will cause less of a decrease in her utility compared to the increase in utility that Mr. Koslo will experience from receiving the same dollar. Therefore, Ms. Shanahan's utility falls by less than Mr. Koslo's utility rises, making option A the correct answer.

MsShanahan Currently Earns $100,000 a Year,while Her Junior Partner,Mr