U(C,F)1=min{0.75F1,0.25C1}, and… Show more Consider the fo

U(C,F)1=min{0.75F1,0.25C1}, and… Show more Consider the following economy. Person one has the utility function, U(C,F)1=min{0.75F1,0.25C1}, and person two has the utility function U(C,F)= 0.75F2+0.25C2, The total amount of food is F0 = 8, and the total amount of clothing is C0 = 24. (a) Find the set of Pareto Efficient allocations. Write this set as a function of C1 on F1 and as a function of C2 on F2? (b) Find the prices in any general equilibrium in this economy, you may normalize the price of C to one? (c) If the initial endowment for person one is (6,12), what are the equilibrium consumptions of both people? • Show less

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