For the closed-economy, one-period model, suppose that U(C, l) = min (C, l), and F(K, N) =

For the closed-economy, one-period model, suppose that U(C, l) = min (C, βl), and F(K, N) = αK + δN, where β > 0, α > 0, and δ > 0. Determine consumption, employment, output, leisure, and the real wage in a competitive equilibrium, and explain your solutions. Also draw a diagram with the con-sumer’s preferences and the production possibilities frontier, and show the com-petitive equilibrium in this diagram.