Roger and Gordon have identical utility functions, U(x, y) = x2 + y2. There are 10 units of x and 10 units of y to be divided between them. Roger has blue indifference curves. Gordon has red ones.
(a) Draw an Edgeworth box showing some of their indifference curves and mark the Pareto optimal allocations with black ink.
(b) What are the fair allocations in this case?