1. (4 points) Production Possibility Frontiers: oats and beef Table 1. Production of oats and beef a. (1 point) Draw a production possibilities curve for your 200 -acre farm between growing oats and wheat. Is there a tradeoff between these two? How is a tradeoff shown in your graph? (Make sure you label your axes.) b. (1 point) Is the trade-off constant or does it change as you have more or less oats and wheat? How is the trade-off represented in the slope of the line? Why does the trade-off change? c. (1 point) What is the price of oats? What is the price of wheat? Add a column to Table 1 and give the price of additional bushels of oats or bushels of wheat in terms of wheat or oats respectively. Where is the price of oats on your graph? What happens to the price of oats as you are growing more oats and less wheat? Why does the relative price change and how does this relate to the neoclassical theory of production? (1 point) Suppose instead of producing wheat, you grow potatoes which restore the fertility for oats by breaking the pathogen-host cycle, just as the oats make the soil better for potatoes by breaking the pathogen-host cycle for potatoes. What happens to your production possibility frontier? Does this mean that you have a free lunch? 1. (4 points) Production Possibility Frontiers: oats and beef Table 1. Production of oats and beef a. (1 point) Draw a production possibilities curve for your 200 -acre farm between growing oats and wheat. Is there a tradeoff between these two? How is a tradeoff shown in your graph? (Make sure you label your axes.) b. (1 point) Is the trade-off constant or does it change as you have more or less oats and wheat? How is the trade-off represented in the slope of the line? Why does the trade-off change? c. (1 point) What is the price of oats? What is the price of wheat? Add a column to Table 1 and give the price of additional bushels of oats or bushels of wheat in terms of wheat or oats respectively. Where is the price of oats on your graph? What happens to the price of oats as you are growing more oats and less wheat? Why does the relative price change and how does this relate to the neoclassical theory of production? (1 point) Suppose instead of producing wheat, you grow potatoes which restore the fertility for oats by breaking the pathogen-host cycle, just as the oats make the soil better for potatoes by breaking the pathogen-host cycle for potatoes. What happens to your production possibility frontier? Does this mean that you have a free lunch