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2. Consider an economy with two goods, 1 and 2, and two agents, A and B. The utility functions are 8 UA(21, x2) = :
2. Consider an economy with two goods, 1 and 2, and two agents, A and B. The utility functions are 8 UA(21, x2) = : 22 UB(x1, x2) = x1 + 10 log(x2). The endowments are (CA, eA) = (4,4), = (ep, e) = (10,3). (a) Consider the problem of maximizing the sum of utilities, max u4(24, 2A) + uB(2, }) + subject to x1 + x
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