Question
The government decides to redistribute food more equally, so it takes 175 units from A and gives them to B. However, the government spoils 79 of these units in transportation, so B ultimately gets only 96 units of food. What is each person’s utility level now? Find the social welfare level in this case
Answer :
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After the government redistributes food, A has 225 units of food and B has 196 units of food, while C still has 16 units.
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