2 5 pts each Lets see how a utilitarian dictator would arran

2. (5 pts each) Let\'s see how a utilitarian dictator would arrange things for Charle Elizabeth and Mary. One heroic assumption that utilitarians make is that you can actually compare (and measure) happiness and misery across different people. Suppose the utilitarian dictator has eight oranges to distribute. that each person receives The Table shows the utility from the first, second, third and fourth orange. Utility per (range T.CharlesTElizabeth- Mary- lst. 2nd 2,0001,200 2,400 1,000 400 800 200 600 100 280 40 2 4th n) Notice each person gets the most utility from the first orange and cach extra orange yields a little less utility. What economie concept doos this reflect? b) How would a utilitarian dictator distribute oranges? o) If instea, Mary received 1,000 units of ntility from the first orange, how would this change the optimal utilitarian distribution?

Solution

a)each person gets most utility from the first orange and each extra orange yield less utility..this reflects the concept of diminishing marginal utility which states that there is a decline in the marginal utility from consuming each additional unit of that product.

b) since the happiness and misery can be calculates he will distribute orange in such a way which yields maximum utility.

Thus he will give 2 oranges each to Charles Elizabeth and Mary.. Rest 2 oranges will be given by giving 1 each to Elizabeth and Mary as it is of greater utility to them compared to Charles.

3)since Mary receives 4000 utility from the first orange which higher than Elizabeth and Charles, she would get the orange first.

Rest distribution will depend upon the marginal utilities revealed further