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The question is below in the picture, Thank you (9 Points) Consider an economy with two consumers A and B, one rm and two commodities:

The question is below in the picture, Thank you

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(9 Points) Consider an economy with two consumers A and B, one rm and two commodities: a consumption good (its quantities denoted by as, its price by p) and labour (its quantities denoted by L, its pice by w). The endowment of each consumer consist of one unit of labour. The utility functions are: ui($i,Li) = xi(1 L.) where cc.- 2 0 and 0 S L.- g 1 for each 2' = A, B. The technology of the rm is deScribed by the production function 171' = ' /L, where L f is the total labour supply. Consumer B owns the rm. (a) (3 points) Determine the consumers' optimal demands for the consumption good and supplies for labor. (b) (3 points) Determine the rm's prot maximizing output, Optimal demand for labor, and the prot. (c) (3 points) Write down the market clearing conditions and calculate the general equilibrium price ratio p/w

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