A utilitarian social welfare function implies that:

Question

Quizplus · Accepted Answer

A utilitarian social welfare function is based on the principle of maximizing total utility, which implies that everyone's utility is considered, and it operates under the assumption that each unit of income or resource has a diminishing marginal utility. Therefore, redistributing income from those with higher income (and thus lower marginal utility for each additional unit of income) to those with lower income (and higher marginal utility for each additional unit of income) can increase overall social welfare, assuming marginal utility is equalized.

A Utilitarian Social Welfare Function Implies That