preferences are represented by: u(C,L) = 3^3log(C+1)+L

Production function is given by: zK (K, N^d) = zK^2/3 (N^d)^1/3

with z=3^8/3 and K=3^-2 suppose that G=1 and h=24

Find competitive equilibrium (C,N^s,N^d,Y,T) and w

5. Suppose that Cookie Monster's preferences are rep- resented by u(C, l) = 33log(C + 1) +1 and his production function is given by zF(K, Nd)=zK% (N'U'l, with z = 3% and K = 32. Suppose that G = 1 and h = 24. Find the competitive equilibrium (C, NS, N J, Y, T) and w. Do not forget to write down the problem(s) that you are going to solve at the beginning. There are two ways to find the equilibrium. Either way is ne (one is much faster than the other but it's your call). I will leave suspicious-looking gure 1 without a legend for no particular reason. Do not quote gure 1 in your answer but you can use it to see if you have arrived at the correct values. \\\" -QRE C [baskets] Figure 1