DSE 2006 21 General Equilibrium Please help!

Posted by MR on Jun 20, 2013; 7:57pm
URL: http://discussion-forum.276.s1.nabble.com/DSE-2006-21-General-Equilibrium-Please-help-tp7582678.html

http://economicsentrance.weebly.com/uploads/1/1/0/5/1105777/24_june_2006_option_a.pdf
The answer is that this allocation is not a competitive equilibrium but is pareto efficient. I get the pareto efficient part as now to make anyone better off we have to make the other agent worse off. But why is it not a competitive equilibrium? Does the competitive equilibrium in case of two min functions is only the locus joining the diagonals of the origins of both the agents? Someone please explain. I have a hard time in understanding the difference between the two.