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.