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2.Consider the following economy }The only input is electricity, and the economy has 800 megawatts to distribute }The economy produces twogoods, A and B, and

2.Consider the following economy

}The only input is electricity, and the economy has 800 megawatts to distribute

}The economy produces twogoods, A and B, and PPF of this economy is described by the equation:800 = 2*A2+ 50*B

a.How many megawatts does it take to produce one additional unit of B?

b.How many megawatts does it take to produce ten units of A?

c.The economy chooses to increase A production from 10 to 11.How many more megawatts will it need to produce this one additional unit?

d.Fill in the production levels of B in table to the right, which describes the PPF of this economy

e.Draw the PPF of this economy.

A B

0

5

10

15

20

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