1) Consider a bakery that produces two baked goods, muffins and bread loafs Draw a production possibilities curve for the two products a) Label the axis b) Draw and label a point (A) to demonstrate a scenario where one muffins is allocated more of the resources c) Draw and label second point (B) where bread loafs is more of the resources d) Shade the area of possible production green e) Shade the area outside of the limits of production red f) Explain how the curve would change, should a new technology be invented that reduced the waste of the inputs (resources). Draw the change on the graph 2. Opportunity cost