On a certain island there are only

1) 2) 3) 4) . (6pts) On a certain island there are only two goods, wheat and milk. The only scarce resource is land. There are 1,000 acres of land. An acre of land will produce either 8 units of milk or 16 units of wheat. Some citizens have lots of land; some have just a little bit. The citizens of the island all have utility functions of the form QM, W) = MW. At every Pareto optimal allocation, What is the equation for the production possibility frontier for this economy? What is the consumption ratio of wheat over milk for a consumer? And what is total milk production? Here, we use the necessary condition for the Pareto efcient coordination of consumption I and production that you learned in the class. What is the condition? Show why it is the necessary condition. (you can draw a diagram)