Consider a society (of two people) choosing levels of production amongst two goods, coconuts and fish X = {c, f}.

(a) True or false: a production bundle can be allocatively efficient and not productively efficient? Explain.

(b) Plot this societys production possibilities frontier, showing an optimal bundle (20,40) as allocatively efficient. Depict the slope of the UPF (like a PPF) and a social welfare function U S intersecting at a tangency.

(c) Depict an following economy within the UPF/PPF as an Edgeworth box: ((10, 10),(10, 30)). Assume two individuals, each with standard preferences. Show the budget lines and contract curve.

(d) Suppose one member of society improves their fishing skills (a technological advance). Show how this might impact the UPF/PPF and Edgeworth box in your figure.