1. Whatis true at any point on the contract curve in an input (Edgeworth)box? Why do competitive markets generate (that is, result in) equilibria that are Pareto efficient in terms of inputs? (Hint: do all firms face the same price for inputs? Do profit-maximizingfirms want to minimize their costs? If so, what is true about the cost minimizing choice of inputs? Include a graph of the firm minimizing its cost given some output.)2. What is the relationship between the contract curve and the production possibility frontier? Where are the origins of the Edgeworth box on the ppf?3. What is the marginal rate of transformation (MRT)? What is the relationship between a point on the production possibility frontier (curve) and the MRT?4.Use a simple two good model to explain the difference between efficiency in production and economic efficiency. Would you agree with the statement that economic efficiency requires an efficient production, but many efficient allocations of inputs (efficiency in production) are not economically efficient?(Hint: does efficient production imply efficiency in distribution (consumption efficiency)?) Explain your reasoning with a graph.

Laval produces lamps and home lighting fixtures. its most popular product is a brushed aluminum desk lamp. this lamp is made from components shaped in the fabricating department and assembled in the assembly department. information related to the 22,000 desk lamps produced annually follows.direct materials $280,000direct labor fabricating department (8,000 dlh × $24 per dlh) $192,000assembly department (16,600 dlh × $26 per dlh) $431,600machine hours fabricating department $15,200mhassembly department $20,850mhexpected overhead cost and related data for the two production departments follow.fabricating assemblydirect labor hours 150,000dlh 295,000dlhmachine hours 161,000mh 128,000mhoverhead cost $400,000 430,000required1. determine the plantwide overhead rate for laval using direct labor hours as a base.2. determine the total manufacturing cost per unit for the aluminum desk lamp using the plantwide overhead rate.3. compute departmental overhead rates based on machine hours in the fabricating department and direct labor hours in the assembly department.4. use departmental overhead rates from requirement 3 to determine the total manufacturing cost per unit for the aluminum desk lamps.