Solved

Refer to the Above Diagrams That Show Identical Marginal Utility

Question 108

Multiple Choice

  Refer to the above diagrams that show identical marginal utility from income curves for Singer and Catalano.If a given income of $20,000 is initially distributed so that Singer receives $15,000 and Catalano $5000: A)  no judgment can be made as to the effect of a redistribution of income on total utility. B)  this initial distribution of income is maximizing the combined total utility of the two consumers. C)  the combined total utility of the two consumers can be increased by redistributing income from Catalano to Singer. D)  the combined total utility of the two consumers can be increased by redistributing income from Singer to Catalano. Refer to the above diagrams that show identical marginal utility from income curves for Singer and Catalano.If a given income of $20,000 is initially distributed so that Singer receives $15,000 and Catalano $5000:


A) no judgment can be made as to the effect of a redistribution of income on total utility.
B) this initial distribution of income is maximizing the combined total utility of the two consumers.
C) the combined total utility of the two consumers can be increased by redistributing income from Catalano to Singer.
D) the combined total utility of the two consumers can be increased by redistributing income from Singer to Catalano.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents