Question: Please answer the question in the photo. (2) Consider an economy with two consumers, A and B. Only two goods are consumed in this economy,

 Please answer the question in the photo. (2) Consider an economy

Please answer the question in the photo.

with two consumers, A and B. Only two goods are consumed in

(2) Consider an economy with two consumers, A and B. Only two goods are consumed in this economy, milk (m) and wheat (w). A can produce at most 60 units of milk, or 40 units of wheat for a given week. On the other hand, B can produce at most 60 units of milk, or 80 units of wheat for a given week. Both individuals have the same preference over milk and wheat, which is given by u(w, m) = mm. (a) Draw a production possibility frontier for this economy for a given week in a diagram where w is on the horizontal axis and m is on the vertical axis. Label carefully. (You can use the grid paper provided below.) (b) Suppose that they decide to produce 'w = 100 and m = 30 in total. Can they reach a. Paretooptimal allocation with this production level? Explain your

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