1. The figure shows the Production Possibilities Frontier for Home. Home produces both Bicycles (B) and Chairs (C) using a single factor of production, Labour. The marginal product of labour is constant in the production of both goods (MPLB is a constant and MPic is a constant). MPLC = 2. 400 Chairs 300+ 200 + 100 #+ 0 20 40 60 80 100 120 140 160. 180, 200 Bicycles (a) Complete the following table for the Home country: L MPLC |MPLB aLB aLC Home (b) Determine the opportunity cost of a Bicycle. (c) The relative demand for Bicycles in the Home country is = 15 -3 PB Determine the quantity of both goods produced and consumed in this economy as well as 2 PC the labour employed in each industry, LB and Lc