Luno's technology for producing omelettes (o) is represented by o= l + 1 where l is labor. He derives the following utility from his consumption of omelettes (o) and his labor (l): U(x, l ) = o-2l² Assume Luno is the only consumer and producer of omelettes in his household. Suppose the price of omlettes is set at 1.

Show that Luno consumes 1.5 omelettes at the Pareto efficient allocation.

Find the market equilibrium allocation and wage rate