Problem
In a competitive economy with two goods X and Y, the marginal cost of producing X is MCX = 20 + 5X. The marginal cost of producing Y is MCY = 10 + 10Y. The G.E. Prices are pX = 5, and pY = 5. If consumer's utility is U=lnX+lnY, what are the G.E allocations of X and Y? Show this G.E. allocation on a diagram.