ASSIGNMENT #1 QUESTIONS Due no later than 11:00 p.m. on Sunday of Unit 2 Weight 2.5% of the final grade Late Submission Policy This assignment is subject to the Late Submission penalty policy, namely 5% per day for three days. This page will close and will not allow further submissions after this Late Submission period has expired. In the event of an emergency that prevents you from submitting within this time frame, special permission must be obtained from your instructor. Documentation substantiating the emergency is required. If the extension is granted, the professor will reopen the submission function for you on an individual basis. Do not email your submissions to your professor, either before or after the due date. All coursework should be submitted through the online course (Moodle) only. Description Students are to complete assignments in Word (or some other compatible word processor; no PDF) and apply economic concepts learned in this course to the answers submitted for evaluation. Do not submit more than ONE document for your assignment. 1. Diagrams 1 and 2 below depict the production possibility frontier (PPF) for Patsy's Snack Shop. Answer the questions below and show all calculations where appropriate. Diagram 1 Cakes 16- 14- 12- 8 0 J K M PPF N 11 15 18 Sandwiches Cakes Diagram 2 0 PPF2 T PPF1 Sandwiches a. Explain in one paragraph how Diagram 1 depicts the problem of scarcity for Patsy's Snack shop. b. By referring to points or values in Diagram 1, explain how the PPF illustrates production efficiency for Patsy's Snack Shop. c. "Every point on the PPF in Diagram 1 involves a trade-off." Explain this by comparing a set of related changes in values on the diagram. d. In Diagram 1, calculate the opportunity cost of increasing the production of cakes from 8 to 12 with the opportunity cost of increasing the production of cakes from 14 to 16. Show all calculations.