Manu and Maddie produce Candles (C) and Fragrance (F). Their production is represented by the PPF which can be written as 25 = F^2 + C^2.

a) Draw the PPF with Fragrance on the X-axis. Choose a point on the PPF. Label the quantities of F and C. What can you say about the use of inputs at that point?

b) If Manu and Maddie are consumers and start off with the produced quantities you chose in part a) on the graph as the initial endowment, discuss the process of trading in pure exchange that leads to Pareto efficiency in consumption.

c) On the same graph as PPF, show a possible Pareto consumer equilibrium using the Edgeworth box diagram.

d) Can consumption efficiency be achieved even if the production is not efficient? Explain.