Answer to Question #216018 in Finance for Laboni

Question

Kamal and Jamal who must split a fixed amount of income of 900 tk. Jamal's income is Ik and utility function is Uk, while for Jamal it is Ij and Uj. Suppose UK=90ik^1/2 and Uj=180Ij^1/2. While the social welfare function is additive and given by W= UK+Uj. What distribution of total income between Kamal and Jamal will maximize social welfare.

Answer 1

Dear Laboni, your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order