Question: Please be quick. thanks, Question [1]: Consider a production economy with 1 consumer and 1 rm. There are two goods: a consumption good c, and

Please be quick. thanks,

Question [1]: Consider a production economy with 1 consumer and 1 rm. There are two goods: a consumption good c, and a factor of production (labour) l. The price of the consumption good is p, the price of the factor is w. Suppose the rm has the production function (2 = max{0, 4(\\/l 1)}. Suppose the consumer has preferences represented by u(c, l) = 2\\/E Z. (Note that labour is a 'bad', and working more reduces utility. We assume here implictly that the consumer has some endowment of time which has no utility itself, but can be sold as labour, which generates income.) 1. What is the Pareto Optimum in this economy? 2. What is the Walrasian Equilibrium in this Economy, if there is one

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