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Answer the question in the attached image. 1. Suppose Redland's annual production possibilities are: A B C D E F Beef 0 60 100 160

Answer the question in the attached image.

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1. Suppose Redland's annual production possibilities are: A B C D E F Beef 0 60 100 160 200 220 Oil 200 180 160 100 40 0 a. Draw the production possibilities curve for Redland on a graph paper, and label it as PP1. (3 marks) b. What is the opportunity cost of increasing output of beef from 100 to 160 units? (1 marks) c. Fill in the following table 1.2 assuming that, 5 years later, the output potential of beef has increased by 20 percent, while the output potential for oil has risen by 10 percent. (2 marks) Table 1.2 G H K L Beef Oil d. Using the data from the above table, draw the new production possibilities curve for Redland on the above graph, and label it as PP2. (3 marks) e. Fill in the following table 1.3 assuming that a technological change enables Redland to produce extra 30 oil for each combination from G through K (of table 1.2). (2 marks) Table 1.3 M N O P Q R Beef Oil f. Using the data from the above table, draw the new production possibilities curve for Redland, and label it as PP3

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