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The utility function of an individual is u 1 (x 1 ) = x 11 + x 12 with x 1 >0 and his endowment
The utility function of an individual is u1(x1) = x11+ x12with x1>0 and his endowment e1 = (2,4) and the utility of another u2(x2) = x21+ 2x22with x2>0 and his endowment e2 = (4,2)
1) Compute the competitive equilibria
2) Is the competitive equilibrium allocation unique?
3) Compute the pareto optimal allocations.
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