4. In two hours JustBorn Candies can produce 30,000 Peeps or 90,000 Mike and Ikes or any combination in between. (LO2- 2 )

a. What is the trade-off between Peeps and Mike and Ikes?

b. Draw a production possibility curve that reflects this trade-off.

c. Identify and label three points: efficient production, inefficient production, impossible.

d. Illustrate what would happen if JustBorn candies developed a technology that increased productivity equally for both products.