Consider the following scenario?
2 consumers - 1 & 2
2 commodities - bicycles(b) and wheat(w)
Same utility function - u(b,w) = bw
production functions -
b = sqrt(l_b) and w = 0.5*sqrt(l_w)
consumer 1 owns both the firms and consumer 2 owns 200 units of labour.
How do we find the competitive equilibirum for such a problem since there is not price term in the budget constraint/PPF?