[2 Que stionl Bill can produce either tables or chairs. Bill can work up to 10 hours a day- His production possibilities are given in the table below: {3 Marks) 1) Explain production possibilities 'ontier (PPR by putting tables on the Horizontal axis and chairs on the vertical axis- 1What is Bill's opportunity cost of producing one additional table? 2) {Sizlrl'entlyr Bill is producing T tables and 140' chairs- a) Is this allocation of resources eicient'? Why? b) Show this allocation on the graph and advise Bill how he can he more eicient. Question2 Explain by applying these concepts with examples- (2 hiarks} a. Rational people respond to incentives b. Role of prices in allocating resources