Two individuals, A and B, are free to engage in trade of clothing and food. Initially, A has 12 units of clothing and 9 units of food, and B has 8 units of clothing and 11 units of food. The individuals have the following utility functions in clothing C and food F:
U_A = 0.15Q_C ∙ Q_F
U_B = 0.08Q_C ∙ Q_F
where Q_F represents units of food, Q_C represents units of clothing, and U represents utility. Determine if a mutually beneficial trade is possible between A and B. If so, who would trade for what?

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The Answer of Two individuals, A and B, are free to engage in trade of clothing and food. Initially, A has 12 units of clothing and 9 units of food, and B has 8 units of clothing and 11 units of food. The individuals have the following utility functions in clothing C and food F: U_A = 0.15Q_C ∙ Q_F U_B = 0.08Q_C ∙ Q_F where Q_F represents units of food, Q_C represents units of clothing, and U represents utility. Determine if a mutually beneficial trade is possible between A and B. If so, who would trade for what?

Two Individuals, a and B, Are Free to Engage in Trade