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Help with both parts 3. Suppose there is one individual producing two goods. This individual has a utility function U(x1, X2) = X1 -X2 /2

Help with both parts

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3. Suppose there is one individual producing two goods. This individual has a utility function U(x1, X2) = X1 -X2 /2 x2/2. The production functions are: x2 = 542, x1 = K1/4 L,/4. a) If there are 50 units of L and 250 units of K. What is the production possibility frontier for this individual? What are the vertical and horizontal intercepts of the PPF? b) What quantity of goods x1 and x2 must be produced to maximize utility

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