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.

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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.

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