Question

please explain why

Suppose the Xavier values each apple at $1 and each banana at $2; Yolanda values each apple at $2 and each banana at $4; and Zoe value each apple at $2 and each banana at $1. Consider the following three allocations: Allocation 1: Xavier has 4 apples and 3 bananas, Yolanda has 2 apples and 2 bananas, and Zoe has 3 bananas and 4 apples. Allocation 2: Xavier has 3 apples and 4 bananas, Yolanda has 2 apples and 2 bananas, and Zoe has 4 bananas and 3 apples. Allocation 3: Xavier and Zoe have nothing, Yolanda has 9 apples and 9 bananas. Rank the three allocations according to the Rawlsian criterion. Allocation 3 is the best, Allocations 1 and 2 are tied. It is impossible to compare any two allocations. Allocation 2 is the best, and Allocation 3 is better than Allocation 1. Allocation 3 is the worst, Allocations 1 and 2 are tied. Allocation 1 is the best, Allocations 2 and 3 are tied.

Answer 1

Option D.

Rawlsian criterion opts for the allocation that maximizes the utility of the person in the worst position, or maximizes the minimum utility.Thus, it is called as maximim criterion.

According to allocation 3, only Yolanda has apples and bananas while other two persons have zero allocation of goods. Thus, their utility is zero and this allocation is not able to maximize the utility of the worst off person. Though, the total value is maximum in case of allocation 3 but since it is unfair it is worst.Thus, allocation 3 is the worst. On the other hand, allocation 1 and 2 divides the good almost equally among the three persons even though the total value is less than allocation 3 but both the allocations are fair. Thus, allocation 1 and 2 are tied.