Consider a Robinson Crusoe economy with one firm and one consumer. The firm is the one from Assignment 4, question 2: Technology is given by the function y = f (l) = { 0 if l 1 l 1 if l 1 We want to be super simple for this question, so let us pick a super simple utility function for the consumer: u(c, l) = 3c l What is the Walrasian Equilibrium for this private ownership production economy? The more interesting question is this: if I think of economies of this type, but where consumers have a utility of u(c, l) = ac l for which parameters a is there an equilibrium? 1