4. Suppose there are 2 goods, waffles and donuts (doughnuts, if you're fancy). Further suppose that it is possible to make 500 waffles if all resources are allocated to the production of waffles, OR, instead, it is possible to produce 1000 donuts if all resources are allocated to the production of donuts. Please draw a PPF for these 2 goods, assuming all resources are identical.

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Chapter3: Interdependence And The Gains Rrom Trade
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4. Suppose there are 2 goods, waffles and donuts (doughnuts, if you're fancy). Further suppose
that it is possible to make 500 waffles if all resources are allocated to the production of waffles,
OR, instead, it is possible to produce 1000 donuts if all resources are allocated to the production
of donuts. Please draw a PPF for these 2 goods, assuming all resources are identical.
Transcribed Image Text:4. Suppose there are 2 goods, waffles and donuts (doughnuts, if you're fancy). Further suppose that it is possible to make 500 waffles if all resources are allocated to the production of waffles, OR, instead, it is possible to produce 1000 donuts if all resources are allocated to the production of donuts. Please draw a PPF for these 2 goods, assuming all resources are identical.
5. What is the opportunity cost of producing a waffle based on the information in #4?
Transcribed Image Text:5. What is the opportunity cost of producing a waffle based on the information in #4?
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