Snowplowing Services Mike and Sarah are the only two residents of a neighborhood. They both get utility from private consumption good, c, and from the total number of workers hired for snowplowing services in their neighborhood, F = fM fS. Specifically, Mike's utility is uM = 4ln(cM) ln(F) and Sarah's utility is uS = 4ln(cS) ln(F). Each of them has an income of $90. The price of the consumption good and price/wage of each worker are both equal to 1. (a) How many workers are hired if the government does not intervene? How many are paid by Mike? How many are paid by Sarah? Start by setting up the problem for both Mike and Sarah. Solution: Agent i solves