Jane can produce either three candy bars (C) or six cords of firewood (W) in a day. Denise can…

Jane can produce either three candy bars (C) or six cords of firewood (W) in a day. Denise can…

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Jane can produce either three candy bars (C) or six cords of firewood (W) in a day.
Denise can produce either 6 candy bars or 3 cords of firewood in a day. (a) Graph their joint PPF.
(b) Assume that they have the same utility function u (C, W) = CW. Suppose that they divide
their production and they want their allocation to be in the general equilibrium. Is the production
(4,7) Pareto efficient?

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