Question: Consider a two-person ( A , B ), two-goods ( X , Y ) economy. Suppose production possibilities frontier is X 2 + Y 2

Consider a two-person (A, B), two-goods (X, Y) economy. Suppose production possibilities frontier is X² + Y² = 50, utility functions for the two individuals are U^A= X^A Y^A, U^B = X^B Y^B. The welfare function is defined as W=U^AU^B . How much X and Y should be produced and how should it be distributed?

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