Answer. the attached questions

3. There are two types of individuals: high ability (type H) and low ability (type L). Regardless of their level of education, the lifetime productivity of an H type is VMP,, while the lifetime value of the marginal product of an L type is VMPL = ]. where IA is the quantity of good X consumed by A, ya is the quantity (2) Find the competitive equilibrium in this economy when a e ($2, $21 of good Y consumed by A, and a E [0, 1] is a preference parameter. and A = 3. Consumer B's preferences are described by the utility function us : (3) Suppose that a planner is trying to maximize the welfare of the R -+ R, with consumers. Would the planner prefer the technologies where * = } UB( TB, yB) = ByB or where A = ? Discuss your answer. where Is is the quantity of good X consumed by B, ys is the quantity of good Y consumed by B, and a is a preference parameter that has the same value as for consumer A. The technology of the firm that produces good X is described by th production function fx : R? -+ R, with fx (lx, kx) = JAlx + (1 - A)kx if lx 2 2 if lx