general equilibrium microecon.

2.) Individual A and B have the following preferences: HA = ln(:c}1) +1n(a:i) and as = ln(a:}13) +1n(a:23). Their endowments are given by MA = (2, 6) and on; = (2, 4 . Solve for (and graph) competitive equilibrium and the contract curve. 3.) Now resolve problem 2 but replace individual A's preferences with EA = mhwi + $23. That is, individual B has a positive externality on individual A