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1. a. My local bagel shop makes two kinds of bagels: plain and everything. A batch of onion bagels takes 30 minutes to make and a plain batch takes 20 minutes. The shop has 4 hours to make bagels before it opens. Draw the PPF this shop faces. If they decide to make 4 batches of everything bagels how many plain batches can they make? What is the opportunity cost of making one more batch of everything bagels?

b. Suppose the shop figures out a way of making the onion batch in 25 minutes. Draw the new PPF (on the same graph as the previous one). If they still make 4 batches of the everything bagels, how many plain can they make? What is the opportunity cost of making one more batch of everything? Comment on how improving the technology of producing one commodity changes the production amounts of both commodities.