Consider a country that produces only two goods x1 and x2. The production function for each good is given by: y1 =10L 0.5 1 y2 =40L 0.5 2 where L1 and L2 represent the labor factor that is used in production of each good and the total labor resources that the country has 100 units of labor: L = 100 L1 + L2. Answer the following: a. What is a production possibility frontier (ppf)? Explain. (2 pts.) b. What is the maximum amount of y1 that this country can produce? What is the maximum amount of y2 that this country can produce? (4 pts.) c. Derive an expression for the ppf for this country (Assume that y2 is on the Y-axis and y1 is on the X-axis). (4 pts.) d. Draw the ppf for this country. Show at least three points (with corresponding numbers on the axes) on the frontier and comment on these points. (5 pts.) e. Derive the marginal rate of transformation (MRT) and calculate MRT for the point at which the country produces 600 units of y1 (5 pts.) f. Suppose that the production function of y1 is changed to: y1 =20L 0.5 1 Draw both the old and the new ppfs. What can be the reason for such a change? What is the economic consequences of this change? How 4 might this change affect the absolute and comparative advantages of the country?