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 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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