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Problem 3 There are two people (A&B) and two goods (1&2). One production process is available wwith a production function. The two...

Fnalretake-Problem 3-Advanced Microeconomics-General Equilibrium
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There are two people (A&B) and two goods (1&2). One production process is available wwith a production function . The two people are endowed with a total of 60 units of good 1 (we do not know what is the division of wealth). The utility function are and . Verify if the following allocation are feasible & Pareto optimal.
Problem 3 There are two people (A&B) and two goods (1&2). One production process is available wwith a production function. The two people are endowed with a total of 60 units of good 1 (we do not know what is the division of wealth). The utility function are and . Verify if the following allocation are feasible & Pareto optimal. a. =(12,24) and =(24,24) b. =(20,20) and =(20,20) c. =(20,40) and =(10,10)
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Problem 3 There are two people (A&B) and two goods (1&2). One production process is available wwith a production function y 2 ( y1 ) = 2 y1 . The two people are endowed with a total of 60...

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