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(a) (4 points) Set-up household's i problem, derive the corresponding first-order conditions, and find their optimal levels of leisure and consumption. Household's problem (b) (4
(a) (4 points) Set-up household's i problem, derive the corresponding first-order conditions, and find their optimal levels of leisure and consumption. Household's problem (b) (4 points) Present the system of equations representing the competitive equilib rium for this economy. Find the competitive equilibrium levels of consumption and leisure for both agents. For simplicity you can assume without justifying it that wages are such that w = A
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