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1. An economy can produce good 1 using labor and capital and good 2 using labor and land. The total supply of labor is 100
1. An economy can produce good 1 using labor and capital and good 2 using labor and land. The total supply of labor is 100 units. Given the supply of capital, the outputs of the two goods depend on labor input as follows: Labor input to Output of Good 1 Labor input to Output of Good 2 Good 1 Good 2 0 O O 0.00 10 94.87 10 139.25 20 134.16 20 175.44 30 164.32 30 200.83 40 189.74 40 221.04 50 212.13 50 238.11 60 232.38 60 253.03 70 250.99 70 266.37 80 268.33 80 278.50 90 284.61 90 289.65 100 300 100 300.00 a. b. (5 points) Graph the production functions for good 1 and good 2. (5 points) Graph the production possibility frontier. Why is it curved
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