1. Calculate the opportunity cost if the company wants to increase milk production from 10 to 15 bottles.

C.O. = ____________.

Milk (bottles/day)	Cheese (pounds/day)
10	40
15	35
20	25
25	10

2. Juan produces 2 balloon rides and 4 boat rides per hour. Juan could produce more balloon rides without producing fewer boat rides. Juan is ____ of his production possibility frontier.

a. producing at the limits

b. producing inside

c. producing outside

d. moving along