1. Illustrate a production possibility curve with mitts on horizontal axis and the balls on vertical axis
|
Baseball mitts (millions
|
0
|
2
|
4
|
6
|
8
|
|
Soccer balls (millions)
|
30
|
24
|
18
|
10
|
0
|
2. Assume the technology for producing mitts improves the meaning that fewer resources are required for each mitt. In contrast, technology for forming the soccer balls does not change. How can draw a new production curve.
3. The opportunity cost of first two million mitts is_______ million soccer balls and opportunity cost of last two million mitts is ____ million soccer balls.