6. (LO 6) Shangri-La produces only two goods: bats and balls. Each worker comes with a fixed quantity of material and capital, and the economy’s labour force is fixed at 50 workers. Table 1.16 indicates the amounts of bats and balls that can be produced daily with various quantities of labour.

a) Complete the production possibilities in Table 1.17.
A B C D E F Balls 0 Bats 0 Bats 2 0 TABLE 1.17 A B C D E F Capital goods 0 25 40 50 55 58 Capital goods 2 Consumer goods 50 40 30 20 10 0 TABLE 1.18 Hours Pages 2 80 4 130 6 160 8 175 10 180 TABLE 1.19 A B C D E F Movies watched 0 Pages studied 0 TABLE 1.20

b) What is the opportunity cost of increasing the output of bats from 46 to 52 units per day?

c) Suppose that a central planning office dictates an output of 250 balls and 61 bats per day. Is this output combination possible?

d) Now, assume that a new technology is introduced in the production of bats so that each worker can produce half a bat more per day. Complete the Bats 2 row in Table 1.17.

e) Can the planning office’s goal of 250 balls and 61 bats now be met?