Chapter 2. Production Possibilities Frontier (PPF) Framework: Pre-Class & In-Class Activities Packet Name/I.D. Number: Section: Date: Part 4B. Economic Equations and Graphs 620 LA 9. Tina can produce any of the following combinations of goods X and Y: 6 10 590 (a) 100X and OY, (b) 50X and 25Y, and (c) OX and 50Y. David can 540 D produce any of the following combinations of goods X and Y: (a) 50X and 485 E OY, (b) 25X and 40Y, and (c) OX and 80Y. Who has a comparative advantage in the production of good X? of good Y? Explain your answer. 380 F Rolls of Paper Towels G 220 H 20 30 40 50 60 70 Books 1. What is gained by choosing to produce at point B, instead of at point A? 2.What is the opportunity cost of choosing to produce at point B, instead of at point A? 10. Using the data in Problem 9, prove that both Tina and David can be 3.What is gained by choosing to produce at point C, instead of at point B? made better off through specialization and trade. 4.What is the opportunity cost of choosing to produce at point C, instead of at point B? 5. Continue moving point by point down the PPF. What is the pattern of gains as one chooses to move down this PPF from point A to B to C to D and so forth? 6. What is the pattern of opportunity costs as one chooses to move down this PPF from point A to B to C to D and so forth? 7. Does the law of increasing opportunity costs hold for book production at Pinnacle Paper Products? How do you know? 8.Explain how to determine whether the law of increasing opportunity cost holds for paper towel production at Pinnacle Paper Products