2. (25) A country has only two inputs K and L and produces two goods X & Y. The country has 30 units of L and 15 units of K. Industry X is endowed with 20 units of L and 5 units of K and industry Y has the rest of L and K. This is an incfficient allocation. Put firm X's origin on the left (4) Graph this endowment point as point 1, labeling the levels of L and K with L on the r-aris, (2) Label the total endowment of K and L on the graph. (4) Given it is an inefficient allocation, graph and label representative isoquants. (3) Show the region that Pareto efficient exchange can lead to. (3) Show the largest increase in X that can result from an efficient exchange. Label this point 2. (1) Show the largest increase in Y that can result from an efficient exchange. Label this point 3. (1) Show a Pareto efficient allocation that has an increase in both X and Y. Label this point 4. (7) Graph below the production possibilities frontier with X on the x axis. Graph points 1, 2, 3 and 4 and the origin points for industry X and Y