Problem 3 Thing 1 and Thing 2 are stuck in a magical hat from which there is no entry or exit. Thing 1 has 10 pounds of nonsense (n) and 20 handfuls of balderdash (b). Thing 2 has 20 pounds of nonsense and 10 handfuls of balderdash. There are no other items in the hat. After some consideration, Thing 1 reveals its utility function: 111(3),?!) = min{b,n) Thing 2 does the same: u2(b,n) = min{h,n) (a) Draw an Edgeworth box with Thing 1 in the lower left comer. Place balderdash on the horizontal axis. Label the endowment point "E" in this gure. (b) Draw Thing 1's indifference curves corresponding to 10 utility and 20 utility. (c) Draw Thing 2's indifference curves corresponding to 10 utility and 20 utility. (d) Is the endowment point a Pareto efficient allocation? Explain. (e) Draw the contract curve. (f) Label the equilibrium allocation point with "A". Is this a Pareto efcient allocation? Explain