1 Consider an economy consisting of one territory and two provinces with their technology and input specified in table 1. In what follows, assume that the economy switches producers in the right order except in items 5, 6 and 11. 1. * * 2 How much is Yukon's opportunity cost of a lobster? 2. * 4 Between Qubec and Nova Scotia, which one is better at producing potatoes and why? 3. 4 Assume that potato production requires labor input only. Determine Nova Scotia's returns to scale of potato production. 4. * 10 With lobster on the horizontal axis, sketch this economy's PPF. 10 Sketch the set of outputs that can be produced if they switch the production in the re- verse order than item 4. 5. 6.** 10 is the set in item 5 a PPF? Explain. Yukon lobster potato input 1 lobster / 10 workers 1 potato / 1 worker 10 workers Qubec 1 lobster / 5 workers 1 potato /5 workers 20 workers Nova Scotia 1 lobster / 1 worker 1 potato / 5 workers 10 workers Table 1