2500 2000 1500 Output 2 D C 1000 500 1000 1500 2000 Output 1 1.1 Explain in one or two sentences what the PPF represents. 1.2 Of the four points (A, B, C and D), which ones are feasible? Justify/explain your answer. 1.3 Of the two points A and C, can you say which one is better for the farmer? Justify your answer. 1.4 Of the two points A and D, can you say which one is better for the farmer? Justify your answer. Question 2 [25 points, of which 5 for each sub-question] Suppose you have the following data on yields of two outputs, namely maize and barley, both measured in ky per hectare. Assume that you have a pool of resources/inputs for which you have already paid, but which you can decide how to allocate towards the production of the two outputs. Maize yield Barley yield (kg/hectare) (kg/hectare) Amaize yield Abarley yield MRT (4b/Am) Revenues 0 4 100 NA NA NA 800 3 900 1 600 3 500 2 400 2 900 3 000 2 200 3 400 1 400 3 700 500 3 800 0