On a certain island there are only two goods

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 M, 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 and production that you learned in the class. What is the condition? Show why it is the necessary condition. (you can draw a diagram)